Buenos Aires. Argentine energy firm Pampa Energía (PAM) is making a major push into oil production with a planned US$1.6 billion investment between 2025 and 2026 to develop its Rincón de Aranda block, aiming to become one of the top crude producers in the Vaca Muerta shale formation.
CEO Gustavo Mariani described the move as “the largest single-project investment in the company’s history.” Pampa expects the block to produce 20,000 barrels per day by the end of 2025, with a target of reaching 45,000 barrels per day by 2027.
In Q1 2025, the company invested US$147 million, a 67% year-over-year increase, with 78% of that spending allocated to Rincón de Aranda.
Cost-efficiency and break-even goals
Executive VP of Exploration and Production Horacio Turri said that while early-stage lifting costs reached US$23–24 per barrel, infrastructure improvements have already brought that figure down to around US$8. The next phase—connecting to the broader Vaca Muerta pipeline system—is expected to reduce extraction costs further to US$5 per barrel, aligning Pampa with national leaders YPF and Vista, whose costs hover around US$4.6.
CEO Mariani also emphasized resilience to price volatility, noting that Pampa’s cash break-even could be below US$40 per barrel.
Pampa’s shares rose 3.7% on Wall Street following the announcement, reflecting investor optimism over the company’s expanded role in Argentina’s oil sector.