Outsourced Contractor Blamed for Maintenance Failures in Vaca Muerta Explosion

A well at Argentina’s giant Vaca Muerta shale formation suffered an explosion that released gas and crude oil for more than three weeks, causing multimillion-dollar losses for state oil company YPF and significant environmental damage in the region.

The accident occurred at well LLLO X-2, where a maintenance error on the wellhead triggered a pressure leak followed by a fire. The work had been outsourced to a third-party contractor unfamiliar with the equipment’s original design, according to a later investigation.

“The root cause was a failure in the maintenance procedure of the heating cable performed by the subcontracted company. YPF had manufactured the equipment through TechnipFMC, but by not commissioning the original supplier for the service, omissions occurred that led to the explosion,” explained Gas Engineer María Gabriela Zambrano, who was part of the technical investigation team.

Zambrano warned that the case should serve as a precedent.

“When tasks are delegated to contractors without full transfer of technical knowledge, the risk of serious failures increases. In this case, the result was the release of thousands of tons of gas with heavy environmental and economic costs,” she said.

Local media including La Política Online reported that the fire forced the evacuation of all personnel, and the leak remained out of control for more than three weeks. Infobae later reported that YPF decided to abandon the well after deeming it no longer viable.

“The lesson is clear: outsourcing without strict safety protocols can have devastating consequences,” Zambrano concluded.

Authorities continue investigating the incident to determine accountability.

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