The company is advancing two strategic projects under Argentina’s RIGI incentive regime. The Bahía Blanca urea plant represents a $2.7 billion investment with 2.1 million tonnes of annual production capacity, making it the largest such facility in Latin America. Construction will require 41 months, with production start-up scheduled for 2030. The project will generate over 3,500 direct jobs during peak construction and approximately 300 permanent positions during operations, while contributing an estimated $1 billion annually in foreign currency through exports and import substitution.
Simultaneously, Pampa is developing the Rincón de Aranda shale oil block in Vaca Muerta with investments exceeding $4.5 billion to reach 45,000 barrels per day production by 2027. Second quarter 2026 results showed production at the block reached 23,400 barrels daily, triple the year-earlier level. Both projects received RIGI approval, providing fiscal and foreign exchange benefits critical for project economics.
Pampa’s second quarter operational performance showed hydrocarbon production hitting a record 107,500 barrels of oil equivalent per day, up 28% year-over-year. Gas production averaged 14.3 million cubic meters daily, increasing 10% annually, with the Sierra Chata block reaching a record 7.4 million cubic meters per day after bringing four new wells online. Electric generation rose 14% year-over-year, outpacing national system growth through enhanced integration between proprietary gas production and thermal power plants. The company reported adjusted EBITDA of $415 million for the quarter, 75% above the prior-year period, driven by hydrocarbon production growth. CEO Gustavo Mariani characterized the quarter as “spectacular,” highlighting the urea plant approval as the company’s most significant investment decision to date.
This article was curated and published as part of our South American energy market coverage.
