The agreement establishes development conditions for the Buena Esperanza I and II, Las Tacanas I and II, and Aguada Villanueva areas. Production from these blocks will be transported to Río Negro’s Atlantic coast for processing and export as liquefied natural gas to international markets. Key provisions include 30-year fiscal stability for covered activities, a banded scheme for royalty settlement, municipal adhesion requirements, and dispute resolution mechanisms including international arbitration.
The royalty structure varies between 7.5, 10, and 12 percent based on international LNG prices, though calculations apply to domestic industrial gas reference prices in the Neuquén basin rather than global LNG quotations. The agreement exempts certain inter-company transactions from gross receipts tax. Provincial authorities granted YPF concessions for the five unconventional areas in early June, located north of Cutral Co near the Neuquén River and Los Barreales lake.
Deputy Damián Canuto defended the agreement as enabling large-scale investments to monetize resources currently constrained by infrastructure limitations. Francisco Lepore characterized LNG development as a paradigm shift for the province, arguing that vessel-based exports eliminate pipeline constraints and position Neuquén in global energy markets. Government supporters framed the initiative as continuity of Vaca Muerta’s decade-long development trajectory.
Opposition deputy Lorena Parrilli described the agreement as maximizing corporate rents while allowing companies to cease domestic currency liquidation after two years under RIGI provisions. Left-bloc deputies Andrés Blanco and Julieta Ocampo questioned corporate benefits and warned of environmental and economic impacts. The controversy reflects fundamental divisions over the fiscal and regulatory terms offered to companies participating in the YPF-led Argentina LNG project, which contemplates transport, liquefaction and export infrastructure for placing Neuquén gas in international markets.
This article was curated and published as part of our South American energy market coverage.
