Argentina's state-run oil company, YPF, has announced plans to invest $3bn (2.54trn pesos) in shale operations as part of its $5bn capital expenditure for 2024, reported Reuters.

The company plans to enhance its cash flow by divesting several conventional fields.

The sale proceeds will be used to bolster its shale operations in the Vaca Muerta formation, reported Bloomberg News.

The company is in the process of appointing a bank to oversee the divestiture, with the intention to commence the sale process by the end of the month.

The sale plan, which was first unveiled in early February 2024, is a part of YPF's broader strategy to optimise its asset portfolio in addition to enhancing its focus on Vaca Muerta shale.

New YPF CEO Horacio Marin was quoted by Bloomberg News as saying in his first earnings call: “Exiting some of our mature conventional fields will release around $800m in capex to be reallocated primarily to shale oil activity.”

The company has identified around 55 mature conventional blocks for exit.

YPF's strategy is to ramp up shale oil production, with an anticipated increase of 24% in 2024, and a further 35% in 2025, targeting an output of 160,000 barrels per day (bpd) by 2025.

By 2027, YPF strategy vice-president Maximiliano Westen projects the company could be producing approximately 250,000bpd.

Westen also noted that engineering work for a new liquefied natural gas (LNG) plant is scheduled for this year and the following year.

YPF is seeking additional partners for this LNG project, which is part of its ambition to become a significant LNG player and a major crude exporter by 2030.

Last month, Reuters reported that ExxonMobil was seeking offers for its oil and gas assets in the Vaca Muerta shale region.