LatAmOil: Argentina seeks to become net energy exporter buoyed by Vaca Muerta

Argentina is edging toward becoming a net energy exporter as the Vaca Muerta shale formation attracts rising investor interest. The area, the world's fourth-largest shale oil deposit and the second-largest shale gas resource, is experiencing renewed investor interest following market reforms implemented by President Javier Milei's administration.

The basin, in the Neuquen Patagonian South and which has long been compared to the US Permian, is now positioned to transform Argentina from an energy importer to a net exporter.

The government's newly introduced Large Investment Incentive Regime (RIGI) is expected to boost energy investments to $15bn in 2025, representing a $2.5bn increase on current levels, according to government figures. Officials project a total of energy investments of $30bn for 2025 and 2026, driven by tax incentives and market-friendly policies aimed at attracting foreign capital.

President Milei is libertarian and pro-business, and is seeking investment – including foreign – and for Argentina to become an energy exporter.

"In 2012, Vaca Muerta was for believers. Today, Vaca Muerta is for engineers," Vista Energy CEO Miguel Galuccio told Reuters, highlighting the basin's transition from potential to proven production gains.