Chevron Targets 30,000 Bpd Output in Argentina's Vaca Muerta by 2025

Chevron Corporation CVX is set to boost its oil output in Argentina’s renowned Vaca Muerta shale formation, aiming to reach 30,000 barrels per day (bpd) by the end of 2025. The company’s target of increased output is a clear signal of both confidence and ambition in one of the world’s largest unconventional energy resources.

Chevron’s Steady Expansion in Vaca Muerta

Chevron has long invested in Argentina’s Vaca Muerta, but 2025 marks a landmark push. The company currently produces about 25,000 bpd from this vast shale formation and plans a jump to 30,000 bpd by year-end. According to Chevron’s Argentina country manager, Vaca Muerta has huge potential for growth and the company’s focus remains on this shale asset, where it holds a strong unconventional resource base that can be quickly scaled into one of its key assets, given favorable market and regulatory conditions. Recent advances in drilling techniques — many adapted from successful U.S. shale plays — have enabled Chevron to scale up quickly, solidifying Vaca Muerta in its global portfolio.

Industry Impacts & Argentina’s Energy Goals

The Vaca Muerta, known as the world’s second-largest shale gas reserve and fourth-largest for shale oil, has been a beacon of potential for turning Argentina into an energy powerhouse. The region is crucial for Argentina’s ambition to curb dependence on expensive imports, especially amid its ongoing economic crisis.

The significance of Chevron’s ramp-up extends beyond corporate gains. Vaca Muerta anchors Argentina’s energy strategy, supplying robust domestic output and enhancing prospects for export markets. As multinational energy investments increase, Argentina stands to leverage Vaca Muerta for greater energy independence and economic improvement. Analysts like those at Rystad Energy estimate overall crude production in Vaca Muerta could reach 1 million bpd by 2030, transforming the nation’s role regionally and globally.

Market Pressures & Near-Term Slowdown

Despite its promise, Vaca Muerta is not immune to global oil market pressures. Lower oil prices and reduced spending by companies have slowed drilling activity in this promising shale region, with several operators, including YPF Sociedad Anónima YPF, scaling back on frac crews amid mergers and asset reshuffles. Other companies like TotalEnergies SE TTE and GeoPark Limited GPRK also opted out of this unconventional oil block.

In August 2025, TotalEnergies divested its stake in two of Argentina’s oil and gas blocks, Rincon La Ceniza and La Escalonada, for an amount of about $500 million. For TotalEnergies, the divestment of these shale assets represented around 20% of its net acreage in that region.

In May 2025, GeoPark announced the termination of its previously disclosed agreement to acquire a non-operated working interest in four unconventional blocks in Argentina’s Vaca Muerta. Geopark’s acquisition deal was governed by a FarmOut Agreement, which allowed either party to withdraw its interest prior to a specific date.

The Regulatory & Investment Landscape

While Chevron, currently carrying a Zacks Rank #3 (Hold), has made a noteworthy success in technical aspects, its executives stress that Argentina must foster a stable and inviting investment climate. In the 2025 Argentina Oil & Gas conference, the company called for competitive costs, predictable regulatory frameworks and the honoring of existing investments. Uncertainties in capital movement and government policy could otherwise dampen the formation’s potential.

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Industry participants and policymakers recognize that increased oil production supports not just operational goals but also Argentina’s broader economic strategy — improved infrastructure for both oil and gas, expanded pipelines and ultimately, enhanced export capabilities.

Looking Ahead: Challenges & Promise

Chevron’s plan comes amid mixed signals for shale development globally — some operators are slowing drilling amid lower oil prices and asset reshuffles, but Vaca Muerta continues to see momentum. Ongoing investments, including the Vaca Muerta South pipeline expected to come online in 2027, will support further production and exports.

If regulatory reforms keep pace with operational progress, Chevron’s increased output will enhance Argentina’s energy security and cement Vaca Muerta’s reputation as a world-class resource.

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This article originally published on Zacks Investment Research (zacks.com).

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