Pluspetrol, GyP seek RIGI approval for multi-billion Vaca Muerta project

Private oil company Pluspetrol and Neuquén’s state-owned Gas y Petróleo (GyP) have applied for their multi-billion-dollar project in Argentina’s Vaca Muerta unconventional formation to be included under the Large Investment Incentive Regime (RIGI), launched in 2024.

According to the Neuquén provincial government, the companies are seeking approval for a $12 billion investment project to develop the Bajo del Choique–La Invernada area.

“The project aims to boost unconventional production in Vaca Muerta, one of the world’s leading hydrocarbon reservoirs, and is part of new initiatives seeking to accelerate the productive and export scale of the Neuquén Basin,” the provincial government said in a statement.

The Pluspetrol–GyP project aims to develop Bajo del Choique–La Invernada to reach production of 100,000 barrels of oil per day. Plans include building four processing plants, drilling around 600 wells, and developing pipelines and evacuation infrastructure over a 25-year timeline.

If approved under RIGI, the project would gain access to several tax benefits, exemption from export duties, relief from the requirement to repatriate export revenues, as well as 30-year stability and access to international arbitration in case of disputes.