Under YPF’s “4x4 strategy,” divestments from mature areas are a core pillar, freeing capital for high-productivity shale assets. As part of this effort, YPF launched Project Andes, a structured divestment program through which the company is marketing mature and non-core conventional fields to smaller operators and provincial governments. This shift also provides an entry point for new players into Argentina’s upstream, broadening the ecosystem beyond the handful of large operators that dominate in the Vaca Muerta region.

In the first round in 2024, nearly 90,000 barrels of oil equivalent per day (boepd) were transferred. Most of this production came from 28 assets sold to smaller operators, while the remaining share, linked to another 11 assets, was returned to the provincial authorities. In Argentina, oil and gas asset concessions are granted for a limited period, and once operated by a company for some time, they can revert back to the provinces, which then decide whether to re-tender or directly manage the assets.

The second round of Project Andes, opened in August 2025, places 16 additional assets on the market, organized into six clusters: NOA (Salta), Chachahuen, Malargüe, Agua Salada, Manantiales Behr, and Mendoza, with both operated and non-operated blocks. Collectively, the oil-rich portfolio contributes close to 60 kboepd of production, underlining its relevance for prospective buyers.

This new round is expected to draw the most interest from smaller independents and mid-sized regional operators already active in Argentina’s conventional space, such as Pecom, Crown Point Energy, Tango Energy, and Oilstone Energía. These players have a proven track record of acquiring and operating mature fields in provinces like Mendoza, Río Negro, and Chubut, where they can apply targeted investment and recovery techniques to sustain production and extend asset life. Provincial authorities have also expressed support, as the divestments promise to sustain local employment, royalties, and operational continuity in areas where YPF has deprioritized investment. The geographic spread of the portfolio offered in this round highlights its significance, with assets spanning Neuquén, Mendoza, Chubut, Río Negro, and La Pampa. This not only underscores the breadth of YPF’s exit strategy but also provides opportunities for a wide range of operators to consolidate positions in mature producing basins.

The assets on offer illustrate how YPF is accelerating the reshaping of its portfolio, shifting capital away from conventional clusters toward its shale hubs and LNG ventures. Independents and regional players with the technical expertise to sustain mature fields are expected to show interest in the portfolio.

Argentina has already overtaken Brazil in deal value this year, with shale, conventional, and LNG deals driving a record $5.7 billion in mergers and acquisitions. With this latest round, YPF reinforces its role as the anchor of Argentina’s upstream consolidation, while setting the stage for further Andes packages in 2026 as portfolio optimization progresses.

Authors: 

Andres Villarroel

Senior Analyst, Upstream Research
andres.villarroel@rystadenergy.com

Flavio Menten

Analyst, Upstream Research
flavio.menten@rystadenergy.com

Radhika Bansal

Vice President, Upstream Research
radhika.bansal@rystadenergy.com

Julia Duailibi Ameijeira

Analyst, Upstream Research
julia.ameijeira@rystadenergy.com

(The data and/or forecasts in this column are Rystad Energy's, and the opinions are of the authors.)