Chile Pact Puts Argentina’s Shale Ambitions in Gear

A long-term export pact steadies Argentina’s shale growth and gives Chile a reliable stream of crude

11 Dec 2025

Argentina’s shale patch is enjoying a rare moment of calm clarity. A new export pact with Chile, which will run until 2033, promises a stable outlet for Vaca Muerta’s rising output and hints at a shift in how South America trades energy.

The deal sends up to 70,000 barrels a day of shale oil across the Andes. For Argentine producers, long used to financial lurches, such predictability is a luxury. For Chilean refiners, it offers a steady stream of crude in a world of volatile freight costs. Officials in both countries hail the accord as a quiet but useful step toward deeper economic links.

The appeal is plain. Firms such as YPF, Vista and Shell gain clearer ground for investment decisions. Chile’s ENAP reduces its exposure to shipping snags and global price swings. A refurbished pipeline, central to the arrangement, has revived talk of broader cross-border schemes.

Still, uncertainties persist. Argentina must keep production rising while navigating political shifts. Long export timelines may trigger unease about domestic supply in tight years. And the pact alone cannot mend the region’s patchy infrastructure or its habit of abrupt policy turns. Yet most analysts argue the advantages outweigh the risks: steady exports build confidence and allow planners to think beyond the next quarter.

Market mood is warming. Some expect the accord to draw fresh investment into unconventional fields and encourage more regional deals. Others see it as a template for ties that balance security with shared economic gain.

For now, momentum is real. Argentina’s outward push may be the first chapter in a broader reordering of the continent’s energy trade.