Argentina to eliminate export duties on conventional oil

The Argentine government announced it will eliminate export duties on conventional oil following the signing of agreements with the country’s oil-producing provinces.

Chief of Cabinet Manuel Adorni, Economy Minister Luis Caputo, and Interior Minister Diego Santilli signed a memorandum of understanding with Ignacio Torres, governor of the province of Chubut, to change the export duty framework for conventional crude.

According to President Javier Milei’s administration, the signing of this agreement “will gradually be extended to the rest” of Argentina’s oil-producing provinces, which total ten.

The government said the elimination of export duties aims to preserve activity in mature basins, provide investment certainty, and protect jobs in the sector.

Under the agreement, the national government will remove export duties on conventional crude, while Chubut will revise the royalty and fee percentages charged to oil companies. In return, companies will commit to maintaining production and the investment plans needed to ensure operational continuity.

Production in Argentina’s conventional blocks has been declining due to mature basins and the decision by major oil companies to focus their investments and operational efforts on Vaca Muerta.