The project anticipates producing 305 million barrels over a 30-year period, generating $17 billion in total exports. Initial investments of $1.5 billion are allocated for the first two years, with annual exports exceeding $1.2 billion beginning in 2027. Production increases will coincide with the startup of a central processing plant and the Vaca Muerta Oil Sur (VMOS) pipeline, which also operates under RIGI benefits. The crude extracted will flow directly through VMOS to the Atlantic coast in Río Negro province for export shipping.
Pampa Energía originally submitted its RIGI application in July 2025 but expanded the proposal following Decree 105/26, which extended the regime’s tax, customs, and currency exchange benefits to upstream oil and gas exploration and production in Vaca Muerta. The expansion established a minimum investment threshold of $600 million for onshore hydrocarbon development projects. The government extended RIGI enrollment until July 8, 2027.
The project will create approximately 800 direct jobs and 1,000 indirect positions during construction and operation phases. Separately, the Energy Secretariat extended Pampa Energía’s concession for the 388-megawatt Diamante hydroelectric facility in Mendoza through December 15, 2026, via Resolution 145/2026. The government plans to advance hydroelectric privatizations through tenders, including the Futaleufú plant in Chubut currently operated by aluminum producer Aluar, with proceeds directed toward 2027 public debt obligations.
This article was curated and published as part of our South American energy market coverage.
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