The oil company is advancing the Palermo Aike project, a bet on the province’s energy future, which will require an investment of US$200 million
11/26/2025 – 1:18 pm
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The search for a new unconventional hydrocarbon hub in Argentina has taken a decisive step. Company YPF has begun exploration work on the “Palermo Aike” project.located in Australia’s Santa Cruz Basin, which many hope will replicate the success of Vaca Muerta in Patagonia.
This initiative, which is considered a milestone for the future of energy in Santa Cruz Diversifying the production matrix and positioning the governorate as a strategic energy center Within Argentina, especially taking into account the tradition of the hydrocarbon industry in the province and the availability of inactive infrastructure.
The official start of Unconventional drilling activities It required a major technical meeting in which the Energy and Mining Environment Supervision and Monitoring Secretariat met with YPF to review the central aspects associated with the management of hazardous waste and drilling sludge, which are essential components in this type of project.
The company announced its key aspects Environmental management plan. For its part, the Environmental Portfolio requested the oil company to provide technical documents to ensure compliance with current regulations. This will allow the relevant regions to evaluate the information and conduct corroboration in the field.
Palermo Aiki is the only investment commitment the state oil company has maintained in the process of returning mature traditional areas to the province, which it has just awarded to a consortium of seven companies to develop.
YPF announces new investment and Santa Cruz searches for Vaca Muerta
Weeks ago, YPF had already begun construction of three sites in the Palermo Aike formation. This represents the first phase of exploratory work With a total investment estimated at 200 million US dollarsThis is a barely symbolic amount compared to the billions that will have to be invested if positive results emerge.
Initial tasks included soil movement and building Access to La Azucena and El Campamento Este permits. The project focuses on using labor and suppliers in Santa Cruz, with local employment expected to increase as work progresses.
Initial estimates from industry and YPF point to this training It can contain up to 10 billion barrels of oil equivalent. For this reason it is classified as the “little brother” of Vaca Muerta due to its geological similarities, and it is estimated that it could be equivalent to a third of the huge deposits of Neuquén.
The formation extends over an area of about 12,600 square kilometers in the southern basin, giving it ample scope for future development. Compared with the Neuquén shale, both formations are of marine origin and have The target depth ranges between 3000 and 3500 metresWhere vertical and horizontal drilling techniques are used with hydraulic fracturing.
The Australian basin already has a long oil tradition, which means it’s got it Major infrastructure such as the San Martin gas channel and oil pipelines that connect to the port of Punta LoyolaFacilitating the evacuation and transportation of production.