The national government announced its decision to do so include oil and gas exploration and production activities (upstream). on the incentive system for large investments (RIGI), a measure aimed at accelerating investment in Dead cow for export projects.
The announcement, made during lunch by Oil daymarks a paradigm shift in hydrocarbon policy. The aim is to encourage the arrival of capital that makes this possible the remaining exportable stocks of crude oil and gas will multiply in the coming yearsaccording to industry sources.
The inclusion of exploration and production under the orbit of RIGI was commissioned by the Ministry of Economic Affairs. The aim is to provide a long-term horizon and uniform rules that allow oil companies to make large-scale investment decisions focused on drilling and completing wells.
The adequacy of the RIGI is a demand from the major oil operators who invest millions in infrastructure projects for the export of gas and oil, but who also demand this Developing thousands of wells in Vaca Muerta to maintain production supplies for the next two decades.
The sector led by the unconventional developments of Vaca Muerta is considered the Argentina’s main economic engine in terms of foreign exchange generation, employment and industrial activity. The rapid increase in production spurred by this framework would contribute significantly to the national energy balance surplus and guarantee increased tax revenues for both the nation and the provinces.
The government’s announcement on Oil Day
The Coordinating Minister for Energy and Mines was responsible for the announcement, Daniel Gonzálezwho recalled that a year ago the sector faced “a different price scenario”. International oil prices fell by around 17% and today Argentina is managed with international awards.”
“Despite this context, we have seen an industry that has maintained its level of activity, that has maintained a clear commitment to the long term and a strategic vision that understands this.” Price cycles continue to be cycles and Argentina is experiencing a historic opportunity“, he explained, pointing out that “even when prices were not supported, we completed 20% more drilling in the unconventional sector than last year, more than 30% more fractures with a historical record of oil production.”
In this sense, he added: “The national government wants to accompany these efforts. That is why we announced this a month ago.” in addition to the provinces of Chubut, Santa Cruz and Neuquén the intention to eliminate withholdings on conventional oil exports, recognizing that at these price levels the economic equation for mature basins becomes extremely difficult.
In addition, he pointed out that the Minister of Economy, Luis Caputo, had ordered this “Find a way to integrate all upstream areas into the RIGI. This is a task that we will begin immediately, with the aim of promoting investment and production. This is the great challenge that lies ahead of us.”
The contribution of the budget balance
The government emphasized that support for the sector would always be provided the non-negotiable principle of budget balanceCornerstone of the economic program. The stability created by these guidelines enables companies Plan for the long term, obtain financing and attract companies who have not previously thought of investing in the country.
An example of this new scenario is the recent acquisition of an asset by Continental, a pioneering unconventional company in the United States. The officer maintained this The arrival of new players promotes competition, leads to better practices and creates the conditions for more investors of weight who are ready to pump capital into the country.
The RIGI has already demonstrated its capabilities by facilitating the further development of essential infrastructure projects. Among them are the PAE project with two liquefaction ships Gas for liquefied natural gas (LNG) and VMOS.
Currently, five industrial projects are being analyzed within the framework of the regime: the expansion of the Perito Moreno gas pipeline, a dedicated gas pipeline for LNG and three processing plant projects related to unconventional oil development. The expansion of the RIGI to the exploration and production segment will consolidate this instrument as the main vehicle for energy investments in Argentina.
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