Energy: Argentina
Key Facts
—New deal. Archer, an Oslo-listed drilling contractor, won a rig contract from YPF, Argentina’s state-controlled oil company, worth about US$100–110 million on 16 October.
—Bigger deal. A December 2025 award covers seven rigs for five years, valued at an estimated US$600 million.
—Pivot. Archer sold its southern Argentina workover business on 30 January to focus on Vaca Muerta.
—Backlog. Archer reports a group-wide order backlog of US$3.8 billion, including contract options.
—Power Index. Argentina ranks 4th of 14 in The Rio Times Latin America Power Index, with 60.2 points (November 2026 edition).
An Oslo-listed drilling contractor is putting more rigs into Argentina’s shale country, and its latest contract with YPF shows how long the oil company expects to keep drilling.
Drilling rigs, not headlines, turn Argentina’s shale rock into barrels, and one contractor is adding more of them. On 16 October, Archer Limited said YPF, Argentina’s flagship oil company, had awarded it a further three-year contract to drill in Vaca Muerta.
Vaca Muerta is a vast shale formation in Neuquén Province in western Argentina, and it is the country’s main source of new oil and gas. For US readers the link is direct, because YPF shares trade on the New York Stock Exchange as American depositary receipts (ADRs), and drilling capacity decides how fast its output can grow.
Archer is a Bermuda-registered oilfield services group whose shares are listed in Oslo. Its Argentine unit, DLS Archer, runs drilling rigs in the basin for YPF.
What the October Award Adds
Archer said the contract adds rig DLS-160 to its Vaca Muerta fleet, while rig DLS-163 keeps working for YPF. The firm term is three years, with an option to extend by two more.
Archer puts the estimated value at US$100 million to US$110 million over the full term, including the optional years. Gerardo Molinaro, Archer’s vice president of land drilling, said the deployment “reflects our long-term commitment to YPF and Vaca Muerta.”
The Seven-Rig Deal Behind It
On 1 December 2025, Archer announced a five-year firm contract to run seven advanced drilling rigs for YPF in Vaca Muerta, with a two-year extension option. It put the estimated value at US$600 million, and said two of the seven rigs would be leased internationally.
The rigs carry managed pressure drilling, a system that keeps well pressure inside tight limits while the bit cuts. Archer said the award strengthens its position in Argentina and gives it clearer revenue visibility.
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Why Archer Sold Its Southern Business
On 30 January 2026, Archer closed the sale of its workover business in Chubut and Santa Cruz provinces in southern Argentina. Workover rigs service wells that are already producing, and the package included 12 of them, 12 pulling units and about 750 employees.
That business generated about US$27 million in revenue in the last quarter of 2025, and Archer kept the price confidential. The company said the sale streamlines its land drilling portfolio so it can concentrate on the growing business in Vaca Muerta.
What Archer’s Latest Results Show
In its third-quarter trading update of 21 October, Archer posted EBITDA (operating profit before interest, tax and depreciation) of US$44.2 million on revenue of US$267.6 million. That is a margin of 16.5%, and EBITDA rose 8% year on year once the divested Argentine workover business is excluded.
Those figures cover the whole group, which also works offshore and in the North Sea, so they do not show Argentina alone. Archer puts its backlog, including options, at US$3.8 billion.
What It Means for You
Holders of YPF ADRs can read the contracts as a sign that shale drilling is being booked years ahead. Rig contracts are a cost for YPF rather than earnings, so they signal ambition, not profit.
The country backdrop is mixed. S&P Global Ratings lifted Argentina to B- from CCC+ on 10 June 2026 with a stable outlook.
What Is Not Known
The releases we reviewed give no day rates, so the contract values cannot be turned into profit per rig. They also do not say how many of the seven rigs from the December award are already drilling.
Archer calls the October award additional, but it has not said whether it sits inside the US$600 million headline figure. The sale price of the southern business also remains undisclosed.
Frequently Asked Questions
Who is Archer?
Archer Limited is a Bermuda-registered oilfield services group listed in Oslo. Its Argentine unit, DLS Archer, runs drilling rigs in Vaca Muerta for YPF.
What did YPF award Archer in October?
A three-year drilling contract with a two-year extension option, adding rig DLS-160 alongside DLS-163. Archer estimates its value at US$100 million to US$110 million over the full term.
What is Vaca Muerta?
A large shale formation in Neuquén Province, western Argentina, and the country’s main source of new oil and gas. Producers drill long horizontal wells there.
Why did Archer sell its southern workover business?
Archer said the sale, closed on 30 January 2026, streamlines its land drilling portfolio so it can concentrate on Vaca Muerta. It did not disclose the price.
Connected Coverage
- The man running YPF: Horacio Marín, YPF’s chief executive
- YPF’s US$8.7 billion shale plan and the incentives it seeks
- YPF and the Argentina LNG export project
- YPF S.A. company profile
- More Argentina news
Sources: Archer Limited stock-exchange releases of 1 December 2025, 30 January 2026 and 16 October 2026; Archer Limited third-quarter 2026 trading update (21 October 2026); S&P Global Ratings sovereign ratings (spglobal.com); IMF World Economic Outlook, October 2026 (imf.org).
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error