BUENOS AIRES, Nov 8 (Reuters) - Argentina's state oil

firm YPF expects to increase shale oil production by

30% to 40% next year, the company's CEO Horacio Marin said on

Friday.

Marin, on a call to discuss financial results, said YPF will

focus its capital investments on its main shale assets,

specifically within the massive Vaca Muerta formation.

Vaca Muerta is the world's second-largest shale gas reserve

and fourth-largest shale oil reserve. YPF is leading activity

there in hopes of turning the country into a major energy

exporter.

"We expect to increase unconventional production from 30 to

40 percent, our incremental production will be in that range,

that's why we can achieve our average of 160,000 barrels (per

day) in the first quarter," Marin said, adding that the

estimates could be conservative.

YPF reported that unconventional oil production rose by 36%

to 126,000 barrels per day in the third quarter, compared to the

same period in 2023, and was up 11% from the second quarter.

Increased activity in unconventional oil offset the drop in

production of conventional oil and led YPF to reach a total

average of 256,000 barrels per day.

YPF's natural gas production grew by 4% compared to the

second quarter and 7.3% versus the year-ago quarter, mainly due

to completion of the first stage of a gas pipeline that links

Vaca Muerta with Buenos Aires.

The company reported a profit of $1.485 billion in the third

quarter, boosted by increases in output and prices of oil and

natural gas. That was far above analysts' estimates of $312

million, according to LSEG data.

YPF continues to seek agreements with major oil companies

for the construction of a liquefied natural gas plant in Rio

Negro that will allow it to export to Europe and Asia.

The company will have a neutral cash flow in 2025 and will

become positive in 2026, Marin said.