Can Chevron's Vaca Muerta Strategy Deliver Long-Term Wins?

Chevron Corporation (CVX) continues to expand its presence in Argentina’s Vaca Muerta shale — one of the world’s largest unconventional oil and gas formations. Having entered the play more than a decade ago, Chevron sees Vaca Muerta as an increasingly vital part of its global portfolio. In 2025, the company reaffirmed its commitment, highlighting an “enviable unconventional resource position” that can be developed into a core asset in the near term.

Located in Argentina’s Neuquén Province, Vaca Muerta has become a key driver of national production, with total crude output hitting a record 816,000 barrels per day in August 2025 — about two-thirds from shale. Chevron has played a major role in this progress, applying its U.S. shale expertise, especially from the Permian Basin, to boost efficiency and well performance. Experts note that Vaca Muerta wells now rival, and sometimes exceed, leading U.S. shale plays, with breakeven prices near $36 per barrel.

Chevron’s involvement also extends to infrastructure development. The company is part of a consortium constructing the $3 billion Vaca Muerta South pipeline, slated to begin operations in 2027. Once complete, it will expand takeaway capacity from 180,000 to roughly 700,000 barrels per day, advancing Argentina’s goal of becoming a regional energy exporter. For Chevron, Vaca Muerta stands as both a strategic growth engine and a cornerstone of its broader Latin American strategy.

Latin America’s Energy Players Strengthen Bet on Vaca Muerta

GeoPark Limited (GPRK) has taken a major step into Argentina’s Vaca Muerta shale, acquiring the Loma Jarillosa Este and Puesto Silva Oeste blocks for $115 million. GeoPark plans to invest $14.5 million in a three-year pilot program and build new infrastructure to boost production. With this move, Colombia-based GeoPark strengthens its regional footprint and long-term unconventional growth strategy.

Argentina's leading energy company, YPF Sociedad Anónima (YPF), is also ramping up its Vaca Muerta operations, focusing on oil and unconventional production. YPF plans $3.3 billion in 2025 investments and aims for 200,000 barrels per day from Vaca Muerta by year-end. Through pipelines, infrastructure upgrades, and strategic development, YPF is strengthening its position as Argentina’s leading crude exporter and long-term energy player.

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