Project – Active
This profile is actively maintainedBankTrack
Diogo Silva, Climate Campaign Lead at BankTrack
Project – Active
This profile is actively maintainedBankTrack
Diogo Silva, Climate Campaign Lead at BankTrack
Why this profile?
The exploration and extraction of the Vaca Muerta Shale Formation threaten both the rights of local populations, including the Mapuche Indigenous community, the local environment, and the global climate. It also jeopardises Península Valdés, a UNESCO World Heritage Site. It is estimated that the total recoverable hydrocarbon resources from Vaca Muerta are equivalent to 16.2 billion barrels of oil and 308 trillion cubic feet of natural gas. Burning them would release nearly 25 billion metric tonnes of CO2, accounting for 30% of the world’s remaining 1.5°C carbon budget (80 billion tons of CO2). As the Vaca Muerta Shale Formation would release more than 1 gigaton (equal to 1 billion tons) of CO2 over its operation lifetime, it can be categorised as a ‘carbon bomb’. More than half of the oil and gas produced in Argentina in 2024 came from Vaca Muerta.
What must happen
Banks must not finance new oil and gas projects in the Vaca Muerta Shale Formation. They must phase out financing for all existing fossil fuel projects and companies operating in or in connection with the Vaca Muerta Shale Formation, on a timeline aligned with the Paris Climate Agreement. In particular:
- Banks must not finance the construction of the Vaca Muerta Sur Oil Pipeline, expected to become operational by the end of 2026, as well as other planned pipelines.
- Banks must not finance the planned floating infrastructure for liquefying and exporting gas extracted from Vaca Muerta. The development of this floating infrastructure will jeopardise the unique ecosystem of the San Matias Gulf, on Argentina’s Atlantic coast.
| Sectors | Oil and Gas Extraction , LNG Terminal, Pipeline Transportation of Crude Oil, Pipeline Transportation of Natural Gas |
| Location |
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| Status |
Planning
Design
Agreement
Construction
Operation
Closure
Decommission
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| Website | https://desafiovacamuerta.ypf.com/ |
The Vaca Muerta megaproject involves the exploration, extraction, processing, transportation, and commercialisation of unconventional oil and gas from the Vaca Muerta formation. Located within the “geological and paleontological wonderland” that is the Neuquén Basin, the formation is a 30,000 km2 deposit of shale oil and gas – about the size of Belgium. It is the second-largest reserve of shale gas in the world, and the fourth-largest of shale oil. Because of the characteristics of the rock formation encasing the gas and oil deposits, hydraulic fracturing (fracking) is used to extract these fossil fuels, with the related risks and negative impacts.
Since exploration began in 2013, billions of dollars have poured in from around the world into exploiting shale oil and gas in Vaca Muerta. By August 2025, there were 51 concessions with commitments of more than USD 200 billion in future investments. In 2023 alone, Argentina is estimated to have received about USD 11 billion in upstream investment. Argentina offers tax and exchange rate incentives to encourage involvement in the oil and gas sector.
The main player in Vaca Muerta is the majority state-owned company YPF (Yacimientos Petrolíferos Fiscales), although dozens of other companies, including Vista, TotalEnergies, Chevron, Equinor, BP, Shell, and Golar, are also involved. In September 2024, the oil and gas extracted from Vaca Muerta represented 58% of Argentina’s total oil production and more than 70% of its gas production.
Fossil fuel export markets for Vaca Muerta include Chile, Brazil, Uruguay, the United States and, as of 2025, India. Plans also include exports to China via the Vaca Muerta Sur Oil Pipeline, an MoU with Indian companies, and agreements with ENI for the Argentina LNG project.
Impact on human rights and communities
Indigenous rights, FPIC, land rights, forced displacement At the heart of this project lies the dispossession, environmental harm, adverse health impacts and denial of cultural identity for local communities, including those of the Indigenous Mapuche people. The Indigenous Mapuche people is denied constitutional rights to participate in the administration of their natural resources by officials who deny their ancestral claim on the land. In 2024, the International Rights of Nature Tribunal found that oil companies in Vaca Muerta occupied Mapuche territory without the legally required Free, Prior and Informed Consent, causing their displacement. Mapuche communities have launched campaigns and protests in resistance to the projects in Vaca Muerta.
Exclusion from consultation & decision-making, Human Rights Defenders In 2024, two Mapuche leaders were temporarily detained for questioning by authorities over their public opposition to extractive activities. Mapuche populations have also been repressed when demanding their legal status. Additionally, some opponents to the construction of facilities on Argentina’s Atlantic coast were not allowed to participate in a public hearing and at least one of them was threatened. In 2019, a German journalist was detained by the police and mistreated after taking photographs in a waste disposal area of hydrocarbon activity.
Clean, healthy and sustainable environment According to spatial data, “more than 3,000 fracking wells pose a contamination risk to local water sources, farms and population centres, threatening public health and livelihoods.” Recently approved fracking wells jeopardise drinking and irrigation water for more than half a million people. These wells are just meters away from the Mari Menuco dam, which provides water to 75% of the city of Neuquén’s population and irrigates fruit plantations (a traditional agricultural activity in the region).
Loss of livelihoods The exponential growth of shale oil and gas extraction in Vaca Muerta has severe negative impacts on local livelihoods. Food and housing prices in the area have risen in response to oil and gas workers' higher salaries and spending capacity, which do not represent those of the local population’s majority. The population of the city of Añelo grew 65.7%, from 10,786 in 2010 to more than 17,876 residents in 2022, forcing families with few resources to the outskirts of town. This influx has also led to increased instances of crime, sexual assault cases, and trafficking of women and drugs in the area. Beyond the Vaca Muerta formation, the export infrastructure under development on Argentina’s Atlantic coast threatens the livelihoods of fishermen and tourism workers.
Impact on climate
Massive greenhouse gas emissions Burning Vaca Muerta’s shale gas (308 trillion cubic feet, releasing an estimated 16.9 billion metric tonnes of CO2) and shale oil (16 billion barrels, releasing an estimated 7 billion metric tonnes of CO2) would devour 30% of the remaining global carbon budget to keep global warming below the 1.5C target.
Continuing to invest in fossil fuels in Vaca Muerta also leads to carbon lock-in and stranded assets; it delays investments in renewable energy; and is potentially breaching both domestic and international law.
The operations in Vaca Muerta are also causing air pollution, releasing toxic volatile organic compounds as well as methane. Methane is not only a health hazard, but it is also about 80 times more powerful than CO2 in capturing solar radiation, significantly contributing to climate change. Emissions released by extracting and burning the record amounts of shale oil and gas stored in Vaca Muerta will further aggravate the already extreme climate crisis.
Impact on nature and environment
Pollution and related health hazards According to a 2016 categorical assessment of peer-reviewed scientific literature, hydraulic fracking has negative impacts on water, soil and air quality and on public health. This extraction method is necessary to develop Vaca Muerta’s unconventional hydrocarbon reservoirs, but it makes use of several dangerous chemicals that might be released during the process. Leaks of these chemicals have been reported at the Vaca Muerta Shale Formation, causing pollution and health hazards such as cancer, cardiovascular issues, liver and kidney issues and negative impacts on reproduction and development, amongst others. There is also a lack of transparency regarding pollution in Vaca Muerta, mainly because of insufficient legislation and insufficient law enforcement, which go hand in hand with a private sector that withholds information. The Constitutional right to a “healthful environment”, recognised by the Argentinian Constitution, is clearly being violated.
Oil spills Despite a lack of publicly accessible official records, there have been reports of numerous oil spills since the beginning of exploration in Vaca Muerta. In 2021, there was a serious spill caused by a failure of one of Oldelval’s pipelines, with 2 to 3 million litres (more than 20,000 barrels) contaminating an area close to Catriel, in the province of Rio Negro. The most probable cause of the spill was a lack of maintenance and insufficient infrastructure renewal. No works have been executed to update the infrastructure.
Toward the end of 2022, there was a spill during the drilling of a well in a field then owned by YPF and Equinor, and in 2023 there was a spill that originated in a YPF-owned pipeline that polluted private property. In late 2023 and 2024, there were spills for which the German company Oiltanking was responsible. These spills were several kilometres wide in a nature reserve, resulting in criminal complaints against the company.
The development of oil and gas terminals in the San Matias Gulf also brings with it a high risk of oil spills in the Península Valdés UNESCO World Heritage site, where 10 protected conservation areas could be adversely affected.
Poor waste management The waste generated by fracking in Vaca Muerta includes highly toxic materials, such as heavy metals and radioactive waste, and has been the subject of legal complaints due to instances of soil contamination. The amount of fracking waste (considered hazardous) originating in Vaca Muerta has been growing at a faster pace than the capacity of treatment plants – between 2023 and 2024, fracking waste grew 35.2%. Oil and gas companies and environmental officials do not publish waste information, despite reports of illegal dumping of toxic waste or disposal without prior treatment.
Water usage High quantities of water are used to fracture rock formations in order to release oil and gas. In the Vaca Muerta area, these fracking wells are close to communities and risk contamination of rivers, schools and irrigation systems. Despite the large quantities of water used, more than 32 million litres per well per year, oil and gas companies are charged less for the water they use compared to what regular citizens pay. Information about oil and gas water usage and impacts is not made publicly available.
Induced seismicity Although there have been several reports, studies, media coverage, and even a dedicated observatory tracking unprecedented seismic activity induced by fracking in the area of Vaca Muerta, the relative data is not made available by the government, as authorities do not adequately track or disclose seismic activity. Induced seismicity risks damaging buildings that are not designed to withstand seismic activity. Old and abandoned oil wells and hydroelectric dams in or near the area are also at risk, as seismic activity can lead to further pollution and risk of floods.
Other impacts
Procedural and legal concerns From the onset, the contracts and procedures that enabled the exploration of Vaca Muerta were marred by procedural and legal disputes. These include allegations of secret clauses between YPF and Chevron that enabled tax and regulatory evasion through offshore companies, and an ongoing legal dispute over the 2012 re-nationalisation of YPF that saw Argentina being fined USD 16.1 billion in damages by a US court.
Civil Society organisations, including Greenpeace Argentina, went to court in 2022 to challenge the government of Rio Negro province for changing legislation that mandates environmental pollution protection. This amendment enables the construction of the Vaca Muerta Sur Oil Pipeline without public consultation.
One of the main providers of sand – a crucial input for fracking – for operations in Vaca Muerta has been charged with environmental damage, as well as money laundering and fraud against the public administration.
A CNN investigation points towards irregularities in the bidding process of the Perito Moreno Gas Pipeline (formerly called Nestor Kirchner Pipeline) that favoured Grupo Techint, and that concerned more than USD 500 million. The pipeline carries gas extracted in Vaca Muerta, connecting to another pipeline in Buenos Aires province. The case was swiftly archived.
Banks finance Vaca Muerta operations in various ways, but mostly by financing the companies that are active in the region. This finance is made available through corporate loans, underwriting services or equity investments. Another way in which banks provide finance for Vaca Muerta operations is by working with companies on specific projects in the area. See below for more details on which banks are financing companies that have operations in the Vaca Muerta basin.
While many companies are involved in the megaproject to explore, extract and transport unconventional oil and gas in Vaca Muerta, the majority state-owned energy company YPF is the “largest holder of inventory wells in Vaca Muerta.”
As of August 2025, around 51 concessions had been granted by the Neuquén province government (see map or interactive map) for the exploration and production of unconventional oil and gas in Vaca Muerta, while plans are underway to expand oil and gas infrastructure for the export market.
Project sponsor
YPF
ArgentinaOther companies
Argentina LNG
ArgentinaBP
United KingdomCapex
ArgentinaCB&I
United StatesChevron
United StatesConocoPhillips
United StatesDow Inc.
United StatesFluxus
BrazilGas y Petroleo del Neuquén
ArgentinaInteroil
NorwayOldelval (Oleoductos del Valle SA)
ArgentinaPampa Energía
ArgentinaPan American Energy
ArgentinaPetrobas Energia
ArgentinaPetronas
MalaysiaPluspetrol
ArgentinaTecpetrol
ArgentinaTransportadora de Gas del Sur (TGS)
ArgentinaVaca Muerta Sur Oil Pipeline (VMOS) Consortium
ArgentinaVista Oil & Gas
MexicoWintershall
GermanyApplicable norms and standards
Map: Existing and planned oil pipelines, exploration and production blocks in Patagonia.
Equinor AGM 2023
Fracking is Hell: Allen and the YPF Trap
YPF drilled more than 200 wells in the Allen area and since then there have been explosions, spills and various accidents.
Socioeconomic implications of shale gas extraction in Vaca Muerta (Central Washington University seminar)
Case Study BOCC report 2021: Fracking in Vaca Muerta
How fracking is taking its toll on Argentina's indigenous people
2022
2022-10-12 00:00:00 | Argentina accelerates Vaca Muerta megaproject gas compression plans, launches tender
Argentine state energy company Energía Argentina has put out to tender another contract associated with the first phase of the Vaca Muerta gas pipeline megaproject.
2022-07-29 00:00:00 | Extraction activity reaches all-time high in Vaca Muerta
Argentina has seen a high increase in oil and gas production its Vaca Muerta Shale Basin. According to research by Rystad Energy, this new peak is part of a wider South American trend that could see the region producing more than 300,000 barrels per day by early 2023.
2022-03-10 00:00:00 | Activity levels rising in Vaca Muerta
Global energy data analytics and SaaS technology company Enverus anticipate that activity levels at the Vaca Muerta Shale Basin will keep climbing. YPF planned to spend USD 1.5 billion in 2021, PAE (Pan American Energy) will invest approximately USD 150 million into infrastructure by mid-2023 , while Shell intends to spend USD 1 billion to drill 100 wells during 2022.
2022-02-24 00:00:00 | Argentina seeks bids to build first phase of Vaca Muerta gas pipeline
The Argentinian government has launched tenders to acquire 656 kilometres of pipes for the Vaca Muerta gas pipeline’s first stage, the construction of which is forecast for completion in approximately 18 months. By winter 2023, this USD 1.6 billion project is expected to add 24 million cubic metres of gas per day to the country's network.
When complete, the full pipeline project will have added a 1,430-kilometre-long pipeline between the Vaca Muerta Shale Basin and Uruguiana in Brazil. From there, another 600-kilometre-long pipeline to the city of Porto Alegre is planned, facilitating distribution to southern Brazil.
2021
2021-09-20 00:00:00 | ConocoPhillips ceases interests in Vaca Muerta Shale Basin
The US energy producer ConocoPhillips has sold all of its interests in Argentina to Vista Oil & Gas. A local oil producer, Vista has acquired a 50% stake in two oil concessions in the Vaca Muerta field and all of ConocoPhilips Argentina’s capital stock. Neuquén’s regional government granted these concessions, which expire in 2050.
Vista chairman and CEO Miguel Galuccio: “This is a unique opportunity to strengthen our position as one of the leading producers in Vaca Muerta. We are not only adding core assets to our existing portfolio, further enhancing our growth potential and shareholder value, but will also contribute our know-how in efficient developments, as well as safe and sustainable operations.”
2021-02-26 00:00:00 | USD 45 billion in 23rd agreement between Argentina and IMF
The International Monetary Fund has approved a new loan programme for Argentina, granting the country more time to repay a debt of USD 45 billion. The agreement includes a series of fiscal and monetary targets designed to help stabilise Argentina’s economy and widen access to international financing. If Argentina’s congress ratifies the deal, debt repayments will recommence. Full repayment is scheduled for 2034.
Vaca Muerta development plans will reduce Argentina’s gas imports, but they also require huge investment; the existing infrastructure is only suitable for some oil expansion, but not natural gas.
2020
2020-09-02 00:00:00 | Redeployment of rigs underway at Vaca Muerta
Argentina’s state-backed energy company, YPF, will be redeploying 46 rigs in the Vaca Muerta Shale Basin between October 2020 and February 2021, following a plunge in oil and natural gas production due to the COVID-19 pandemic.
2019
2019-09-17 00:00:00 | Vaca Muerta granted military police protection
Argentina’s Ministry of Security has placed the Vaca Muerta Shale Basin under the jurisdiction of the military police force, in response to growing union, environmental and Indigenous protests in the area.
2013
2013-07-17 00:00:00 | YPF and Chevron sign Vaca Muerta deal worth USD 1.24 billion
In a move intended to open up the Vaca Muerta Shale Basin to global oil and gas markets, YPF has secured its first major international investment deal since Argentina’s government took control of the energy company in 2012. Chevron’s USD 1.24 billion investment in the region is designed to be the first of many, in a bid to reverse Argentina’s declining domestic oil and gas production.
