Pampa Energía secures incentives for major oil project in Argentina's Vaca Muerta

Argentine oil company Pampa Energía has gained access to the Regime for Incentives for Large Investments (RIGI) to launch a multi-billion dollar oil project in the Vaca Muerta unconventional hydrocarbon formation. The RIGI evaluation committee approved Pampa Energía's $4.52 billion investment plan for the Rincón de Aranda oil block.

The Ministry of Economy announced that the initiative "will allow for exports of $17 billion from the production of 305 million barrels of oil during its 30-year duration." Under RIGI, Pampa Energía will benefit from various tax advantages, exemption from export duties, and freedom from the obligation to repatriate export earnings. The project also guarantees 30 years of stability and access to international arbitration for disputes.

Pampa Energía acquired the remaining 45% stake in Rincón de Aranda from Total in June 2024, giving it full control of the block, which holds significant potential for unconventional oil production. The block is located in Argentina's Neuquén province, in the heart of the Vaca Muerta formation.

The company's plan, to be executed until 2041, includes drilling 259 wells, constructing a treatment plant with a capacity of 45,000 barrels of crude oil and 800,000 cubic meters of gas per day, and developing necessary infrastructure like pipelines for production evacuation. Pampa Energía anticipates that all production from Rincón de Aranda will be destined for the export market, with estimated earnings of $17 billion over the project's lifespan.