ECONOMY | Today 12:10

Milei incentives set to boost US$12-billion Vaca Muerta oil field

Pluspetrol SA, a privately-owned driller, said it would accelerate production of Bajo del Choique-La Invernada under Milei’s so-called RIGI initiative.

Worker at the Vaca Muerta Sur pipeline construction site in Neuquén, Argentina. | Sarah Pabst/Bloomberg

President Javier Milei’s marquee investment incentive package is set to bring forward development of a flagship oil field in Argentina’s booming Vaca Muerta shale patch.

Pluspetrol SA, a privately-owned driller, said it would accelerate production of Bajo del Choique-La Invernada under Milei’s so-called RIGI initiative, which was broadened out earlier this year to shale oil wells.

Pluspetrol purchased the acreage from Exxon Mobil Corp. 18 months ago and on Thursday applied to RIGI, saying it would spend US$12 billion to reach daily output of 100,000 barrels of crude and the equivalent of another 73,000 of gas within about two decades.

Other drillers are also speeding up their Vaca Muerta oil plans under RIGI, but Bajo del Choique-La Invernada is the biggest project yet to seek inclusion.