Argentina: A Rising Energy Powerhouse Beckons Global Investors
By Carlos Miguel Moreno, Deputy Head of Mission at the Argentine Embassy in the United Arab Emirates.
In a rapidly evolving global energy landscape, Argentina is quietly but decisively positioning itself as one of the most promising frontiers for large-scale oil and gas investment as well as in the energy transition sector. At the heart of this transformation is a powerful combination: world-class unconventional reserves, robust infrastructure plans, and a newly enacted legal framework designed to attract and protect major capital flows, the Incentive Regime for Large Investments (RIGI).
Vaca Muerta: The Sleeping Giant Awakens
Located in the Patagonian province of Neuquén, Vaca Muerta is Argentina’s crown jewel a shale formation whose size and productivity rival the best plays in North America. With just 5% of its recoverable resources tapped, it already produces 55% of Argentina’s oil and holds an estimated 27 billion barrels of technically recoverable shale oil, placing Argentina second globally after the United States.
More than 2,000 active wells currently operate across the formation. By 2030, projections suggest daily production could exceed 1 million barrels of oil and 170 million cubic meters of natural gas, provided the right investment and infrastructure conditions are met.
The RIGI Effect: Turning Potential Into Projects
To unlock this potential, Argentina s government introduced RIGI, a 30-year regime offering tax, customs, and currency exchange benefits for investments over USD 200/300/600 million, depending on the sector. As of mid-2025, over 55% of the USD 17 billion in approved RIGI projects belong to oil and gas. Analysts estimate the total potential could surpass USD 54 billion by 2040, making energy the centerpiece of Argentina s investment revival.
Key benefits for investors under RIGI include:
A stable legal framework for 30/40 years, depending on the size of the project.
A corporate tax reduction to 25%
Tariff exemptions for capital goods imports
Free availability of 100% of export revenues from year four onward
No export or price restrictions for hydrocarbons
Flagship Energy Projects Underway
Several landmark initiatives have already secured RIGI status:
Vaca Muerta Sur Pipeline (YPF): A USD 3 billion project to transport crude from Neuquén to Punta Colorada in Río Negro. Once completed, it will enable 550,000 bpd, scalable to 700,000 bpd by 2028.
Southern Energy (Golar/PAE): The country s first floating LNG terminal, with an initial investment of USD 2.9 billion and a total of USD 7 billion projected over 20 years. Located in the San Matías Gulf, this first FLNG will process 2.45 MTPA (million tons per year) starting 2027. Another FLNG plant, with a slightly larger capacity, will be added later, bringing the total production volume to 6 MTPA.
Argentina LNG 1 (YPF SHELL). Located in Sierra Grande, Río Negro. It will consist of two FLNG plants with a capacity of 5 MTPA each (total 10 MPTA).
Argentina LNG 2 (YPF ENI). Also located in Sierra Grande, this second project is based on the agreement that YPF signed with ENI in June 2025. It will consist of two other FLNG plants with a capacity of 6 MTPA each (total 12 MTPA).
Pipeline and gas infrastructure expansion: Including the Néstor Kirchner Gas Pipeline, NEUBA II, and upgrades to northern gas networks, these works support both domestic supply and Argentina s emergence as a regional LNG exporter.
Why Argentina? A Compelling Case
Argentina s competitive advantages go beyond geology. Its wells in Vaca Muerta consistently outperform U.S. shale peers in production curves and cost efficiency. The average breakeven price is under $40 per barrel, placing it among the most profitable unconventional plays globally.
At the same time, global dynamics favor Argentina. As U.S. shale growth matures and international LNG demand rises especially from Europe and Asia, Argentina s potential to plug the supply gap becomes increasingly valuable. With more drilling rigs and fracturing fleets freed up globally, the country is in a unique position to ramp up operations quickly.
A Strategic Export Future
Supported by RIGI and national energy plans, Argentina is charting a course to become a secure energy supplier for the Atlantic Basin and beyond. Its combination of abundant resources, stable investment rules, and export infrastructure makes it a credible alternative to traditional suppliers like Qatar and the U.S.
Argentina s ambition is not just to produce more but to add value, export efficiently, and integrate into global markets. With growing geopolitical interest and robust policy backing, the window of opportunity for investors is now wide open.
In an era where energy security and diversification matter more than ever, Argentina offers a rare proposition: low-cost production, untapped reserves, and a government determined to attract global capital. With Vaca Muerta as its spearhead and RIGI as its foundation, Argentina is no longer just a prospect; it’s a reality in motion.
By Carlos Miguel Moreno, Deputy Head of Mission at the Argentine Embassy in the United Arab Emirates.
For inquires contact: ocbai@mrecic.gov.ar
