Santa Cruz hydrocarbon activity declines after YPF departure

Hydrocarbon activity in Santa Cruz has declined following the departure of YPF from the province's conventional fields after 81 years of presence. Between January and July, the province completed only 17 oil wells, significantly fewer than the 92 wells completed by neighboring Chubut in the same San Jorge Gulf Basin.

Oil production in the province fell by 6.1% in July compared to June, reaching 8,456 cubic meters per day. This represents a 10.5% decrease compared to July of the previous year. Production in the areas previously managed by YPF has stabilized between 4,700 and 5,000 cubic meters daily after a continuous decline that began in 2017.

Santa Cruz's share of national crude production dropped to 7.5% in the third quarter of 2025, down from 10.4% at the end of 2023. Additionally, registered private employment in the jurisdiction saw a 16.1% decrease between November 2023 and June 2026. To encourage development in mature fields, the provincial government implemented the ‘Más producción y trabajo’ program with 14 operators, offering a royalty scheme of 12% with potential reductions based on investment commitments.