Pampa Energía Advances $4.5 Billion Investment in Vaca Muerta’s Rincón de Aranda Under RIGI Incentive

Pampa Energía’s recent RIGI application encompasses a comprehensive plan to deploy $4.5 billion across exploration, production, and associated midstream infrastructure in the Rincón de Aranda block, Neuquén province. This expenditure includes constructing treatment plants, oil and gas pipelines, storage terminals, and pumping stations to integrate with key networks like the Perito Moreno gas pipeline and Vaca Muerta Sur oil pipeline. The investment supports accelerating development in the block’s northern sector with over 100 additional wells planned, aiming to surpass original production forecasts and sustain elevated output levels longer.

Following asset acquisition from TotalEnergies in 2023, Rincón de Aranda has emerged as Pampa’s primary growth driver within Vaca Muerta, scaling production from under 1,000 barrels per day in early 2025 to nearly 20,000 barrels by year-end. For 2026, the firm plans to invest roughly $770 million solely on this block to boost daily output to an estimated 25,000 barrels in Q2, then 28,000 by midyear, aided by a temporary processing facility. Long-term goals foresee a production plateau nearing 45,000 barrels daily by 2027, maintaining robust operational activity with 10 pads currently active, 20 new wells scheduled for drilling, and 35 completions planned during the year.

The project benefits from an estimated lifting cost near $10 per barrel, supporting competitive economics. Funding largely derives from internal cash reserves near $1.1 billion, enabling investment continuity without new external debt. Pampa’s consolidated upstream exploration and production investments are projected at $1.1 billion in 2026. With EBITDA exceeding $1 billion and production growth of 8% year-on-year, Rincón de Aranda solidifies its role as a value generator for Pampa and a cornerstone asset in Argentina’s unconventional hydrocarbon development under the expanded RIGI framework.