The company, specializing in the exploration, production, refining and commercialization of petroleum, had its origin in 1907, when oil was discovered near the city of Comodoro Rivadavia in Chubut.

YPF bought its first tanker in the United States in 1923, and built not only several extracting facilities, but whole towns and cities, such as Comodoro Rivadavia; Caleta Olivia in Santa Cruz; Plaza Huincul in Neuquén; and General Mosconi in Salta.

[17] YPF produced 5.5 million barrels by 1929, and though its share of domestic output had declined to 58% (from 77% in 1923) amid a sharp rise of Esso and Royal Dutch Shell production in Chubut, the firm now covered a third of the nation's oil market.

[13] The Petroleum Institute (Instituto del Petróleo) was created on 30 December 1929, and directed by Ricardo Rojas, the rector of the University of Buenos Aires.

[13] This gain was partly offset by a 40% drop in private-sector output, however, such that overall oil production rose by only one-third during the Peronist decade while annual consumption nearly doubled to 70 million barrels.

YPF was granted an exemption from steep oil import tariffs levied on private firms, and Article 40 of the Constitution of 1949 stipulated the nationalization of all energy and mineral resources.

[21] These initiatives were opposed by much of the Army, the opposition UCR, and among others Perón's point man on national oil policy, YPF head Julio Canessa, who was dismissed.

[20] These contracts created a controversy referred to by Frondizi himself as the "oil battle," and were ultimately cancelled by President Arturo Illia in 1963 over concerns that YPF would be deprived of adequate returns for its exploration investments;[20] of the foreign firms which had taken part in the 1958 bids, only Amoco remained.

Puesto Hernández, near Rincón de los Sauces, Neuquén Province, was later declared the "national energy capital" due to its having at the time around half of Argentina's reserves of oil and natural gas.

[24] Regaining its monopoly on oil imports in 1971 (which still averaged around 15 million barrels), YPF retained a majority of production (75%), as well as refining and distribution (60%), of petroleum in Argentina.

Another serious drain resulted from the failure of other state enterprises such as Argentine Railways and the national airline to pay YPF for their fuel in full and on time.

[26] The death in a helicopter crash of the firm's director, Raúl Ondarts, and the appointment of General Guillermo Suárez Mason in 1981 was followed by a period of severe mismanagement, moreover.

[29] Suárez Mason had YPF borrow heavily not only to cover such asset stripping but also at the behest of Economy Minister José Alfredo Martínez de Hoz, whose bid for currency strength and policy of financial deregulation required a sharp rise in foreign debt to maintain.

[30] YPF debts thus rose 142-fold during Suárez Mason's tenure,[29] at the end of which in 1983 the company recorded a US$6 billion loss (the largest in the world at the time).

During the 18 months prior to the IPO, YPF underwent a massive restructuring process led by its new CEO José Estenssoro, who had been appointed by President Menem.

[33][34] Estenssoro stayed on as CEO, and further streamlined the company while expanding its reach outside Argentina, acquiring Maxus Energy Corporation of Dallas for US$740 million in 1995.

[42] Argentine international energy trade recorded an imbalance of US$3 billion in 2011, the first negative figure since 1987,[43] and the relationship between YPF and the government became difficult.

[46][47] Political risks and government intervention, including price controls, have discouraged foreign investment in oil production in Latin America in general.

[48] President Cristina Fernández de Kirchner raised YPF frequently in speeches during March 2012, claiming that underinvestment and excessive dividends at the firm had caused declines in output.

Planning Minister Julio de Vido was appointed to head the Federal intervention, replacing CEO Sebastián Eskenazi.

Economy Minister Hernán Lorenzino claimed in turn that asset stripping at YPF had financed Repsol's expansion in other parts of the world.

[54][55] The Chinese state oil concern, Sinopec, was reported to have been in talks to buy out Repsol's share in YPF – a potential deal scuttled by the Argentine announcement.

[56] Both Repsol and YPF shares fell sharply before and after the announcement,[44] and the cost of insuring Argentine government bonds against default rose,[57] as did those of Spain.

[59] The largest minority shareholder, the Petersen Group, had financed their initial purchase of 15% of the stock with a vendor's loan from Repsol for €1.5 billion.

[6] The 2008 agreement required Repsol to buy back shares owned by the Group and to assume the loan should the Madrid-based firm lose majority control of YPF.

[61] Miguel Galluccio, an Argentine petroleum engineer with experience at both YPF and at oilfield services leader Schlumberger as president of its production management division in London, was appointed CEO.

[67] A joint exploratory venture for the development of tight oil and shale gas at the Vaca Muerta field was signed with Chevron Corporation on 16 July 2013.

[68] Following its renationalization, rapidly rising investment levels at YPF have been funded mostly via internal financing, by Chevron, and by the periodic issuance of high-yield corporate bonds.

[73] The company remained the largest in its sector in Argentina despite declining production, operating 52% of the nation's refinery capacity in three facilities and 1,600 filling stations.