ARGENTINA · OIL AND GAS
Key Facts
- The country Argentina is an oil and gas producer with old fields in the north and the Vaca Muerta shale in the south, and YPF is its best-known oil company.
- Why it matters YPF, whose shares trade on the New York Stock Exchange, faces a court deadline over a leaking well it drilled in 1983.
- Why now A court order was notified to the companies on Friday 23 October 2026, and the first plans are due within 10 business days.
- What happened A judge in Orán ordered YPF and the last operator, President Petroleum, to plan the closure of the Lomas de Olmedo X-10 well in Salta and to contain the contamination.
- The numbers Ten business days to file the plans, six companies in the concession chain, and an earlier estimate of about US$15 million to control the leaks and seal the well.
- What it means for you Holders of YPF shares face a possible environmental bill, but the order sets no fine and decides no responsibility.
- Still open How much has leaked, how YPF responds, and who finally pays for the closure.
- Power Index Argentina ranks 4th of 14 in The Rio Times Latin America Power Index, with 61.2 points (October 2026 edition).
In Plain English
YPF is Argentina’s best-known oil company, and its shares trade on the New York Stock Exchange. President Petroleum is the last operator of the Puesto Guardián area in Salta, and El Tribuno reports it was declared bankrupt in 2025.
The Cuerpo de Investigaciones Fiscales, or CIF, is the technical team of the Salta prosecutors’ office. A medida cautelar is an urgent court order that acts before a final ruling, so it does not decide who is responsible.
A court in northern Argentina has given YPF and the last operator of the area, President Petroleum, 10 business days to file plans to close a leaking oil well at Pichanal in Salta province, in an order notified on Friday 23 October 2026. YPF, whose shares trade on the New York Stock Exchange, drilled the Lomas de Olmedo X-10 well in 1983, according to El Tribuno, and the same newspaper puts the cost of sealing it at about US$15 million.
Judge Ramiro Morizzio of the Orán court acted on a request from Pichanal prosecutor María Sofía Fuentes, and the order is described as an urgent, preventive and provisional environmental measure that does not decide liability. Four other companies from the concession chain are still awaiting notification, and no figure for the volume released has been published.
What the Court Ordered
The order requires a technical plan for the definitive closure and abandonment of the well, drawn up by competent professionals, within 10 business days, according to El Monterizo, which cites the Salta prosecutors’ office. A separate Contingency and Containment Plan must stop the substance on the surface from spreading, and it is to be prepared with the provincial Environment and Mining and Energy secretariats.
The plans must set out the method of intervention, safety measures, ways to prevent new surges, an execution schedule and follow-up monitoring. The containment plan includes isolating the area, installing barriers, identifying runoff paths, monitoring nearby land and applying protocols for rain.
The judge considered that the companies in the concession chain could carry strict and joint liability for the closure and for restoring the soil, while stressing that the measures are not a final ruling on responsibility. Failure to comply could amount to judicial disobedience under Article 239 of the Penal Code, according to El Tribuno.
A Well Drilled in 1983
In a June 2025 statement reported by El Tribuno, President Petroleum rejected responsibility for the well, saying YPF drilled it in 1983 and left it without proper sealing. The company said it told the provincial authority about the first leak detected in August 2023, and El Tribuno dates the violent eruptions from 19 May 2025.
In May 2025 the Salta government said it had ordered the well’s abandonment in November 2024 and that the operator had filed an appeal against that resolution. A court hearing in the same month ordered a crisis committee and a contingency plan, according to the Salta prosecutors’ office.
El Tribuno puts the cost of closing the well at about US$15 million, with special equipment and at least one relief well needed. It recalls that the MdT 14 well in the same Puesto Guardián area went out of control in 2006 and was sealed in 2012 at a cost of more than US$30 million.
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Who Is Involved
YPF and President Petroleum have been notified, while EPP Petróleo, Tripetrol Petroleum, the Argentine branch of Netherfield Corporation and Petrolera San José await notification, according to Nuevo Diario de Salta. President Petroleum is the area’s last operator and, per El Tribuno, was declared bankrupt in 2025, which leaves open who can pay.
No statement from YPF on the order appears in the local reports reviewed, so the company’s position on the 1983 well is not known. President Petroleum had earlier blamed YPF for the state of the well, and the court has not ruled on that dispute.
Why the Rain Matters
The order cites the risk that heavy rain tied to a strong El Niño, which local reports call Super El Niño, could carry the contamination onto farmland and cattle land. Local ranchers blame the well for about 300 cattle deaths, according to El Tribuno, and the first complaint dates from August 2023.
The reports describe gas emissions and a substance deposited on the surface rather than a measured volume of oil. The Salta government said in May 2025 that gas and liquid were surfacing from a crater beside the wellhead, with damage to vegetation and fauna matching earlier periods.
What It Means for You
For holders of YPF shares in New York, the case shows that an old well can leave an environmental bill, although the order sets no fine and decides no responsibility. The cost mentioned, about US$15 million for this well, is an earlier estimate, and the final bill depends on what the closure plans show.
Travellers face no direct effect, since the well sits on public land in Salta’s Orán department. Background on the company is in the YPF company profile, and wider news is on the Argentina news page.
What Is Not Known
The volume of oil, gas or other fluid released has not been published, and neither has the area affected or any measurement of contamination. The sources reviewed also do not show whether YPF or President Petroleum will appeal the order or file the plans within 10 business days.
It is not known how the cost would be shared among the six companies, one of which is reported bankrupt. Nor is it known when the well could be sealed, since El Tribuno says the work needs special equipment and at least one relief well.
Frequently Asked Questions
What did the court order YPF to do?
It ordered YPF and President Petroleum to present, within 10 business days, a technical plan for the definitive closure of the Lomas de Olmedo X-10 well and a plan to contain contamination. The order was notified on 23 October 2026.
Where is the leaking well?
The Lomas de Olmedo X-10 well is in the Puesto Guardián area of Pichanal, in Orán department, in the north of Salta province, Argentina. YPF drilled it in 1983, according to El Tribuno.
How much will closing the well cost?
El Tribuno puts the cost of controlling the leaks and sealing the well at about US$15 million. The figure is an earlier estimate, and the court order has not set any amount.
Is YPF found responsible for the contamination?
No, because the judge described the measures as urgent, preventive and provisional, not a final decision on responsibility. The companies in the concession chain could face strict and joint liability for closure costs.
Who is President Petroleum?
President Petroleum is the last operator of the area where the well sits, and El Tribuno reports it was declared bankrupt in 2025. It has said YPF drilled the well in 1983 and left it unsealed.
Sources: Nuevo Diario de Salta, 27 October 2026; El Tribuno, 27 October 2026; El Monterizo, citing the Salta prosecutors’ office, 27 October 2026; La Hora de Salta, 27 October 2026; Voces Críticas, 26 October 2026; Salta provincial government, 26 May 2025; Salta prosecutors’ office, 27 May 2025; El Tribuno, 10 June 2025; YPF investor centre, accessed 27 October 2026.
Editorial responsibility: Matthias Camenzind, Editor-in-Chief · Editorial standards · Report an error