The project targets production of 70,000 barrels of oil per day and 3.6 million cubic meters of natural gas daily from the Los Toldos II Este block, located approximately 30 kilometers from Rincón de los Sauces in the northern sector of the Vaca Muerta formation. The development plan encompasses drilling 380 horizontal wells and constructing a central processing plant, oil and gas pipelines, power generation facilities and water handling infrastructure across a 78-square-kilometer area.
Investment deployment follows a three-stage schedule extending to 2054. The initial phase allocates $1.635 billion through February 2027 for core infrastructure including the central processing facility, pipeline networks and drilling of 16 wells. The second phase commits $1.268 billion from March 2027 to June 2029 to expand treatment capacity and drill 91 additional wells. The final stage directs $3.529 billion toward completing the remaining 273 wells through 2054.
The Ministry of Economy projects the development will generate 3,100 direct jobs and 4,800 indirect positions, with an estimated 800 small and medium enterprises participating in construction and service provision during infrastructure buildout. The investment represents Tecpetrol’s largest capital commitment to date, with over $2 billion scheduled for deployment by end-2027.
RIGI classification as a Strategic Long-Term Export Project grants the partnership exemption from export duties, relief from repatriating foreign currency earnings, 30-year regulatory stability and access to international arbitration for dispute resolution. The regime also provides various tax and customs benefits contingent on meeting investment milestones, with the companies committing $1.76 billion in the first two years, exceeding minimum thresholds.
The approval advances Governor Rolando Figueroa’s campaign to incorporate upstream oil and gas investments into the RIGI framework, positioning the provincial state company to capture a stake in Vaca Muerta’s economic output. The project’s substantial production targets and extended timeline reflect Argentina’s push to establish unconventional hydrocarbons as a primary source of export revenue and foreign currency generation through mid-century.
This article was curated and published as part of our South American energy market coverage.
