Oil companies Tecpetrol and 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 government of Neuquén province, the project -named Los Toldos II Este- envisions an initial investment of $2.4 billion through 2028.
The unconventional oil block is located in northern Vaca Muerta, about 30 kilometers from Rincón de los Sauces in Neuquén.
The project will be operated by Tecpetrol, part of Argentina’s Techint Group, in partnership with the provincial state-owned company Gas y Petróleo del Neuquén (GyP), with stakes of 90% and 10%, respectively.
The initiative includes the drilling of around 380 wells and the construction of key infrastructure, including a processing plant, oil pipelines, gas pipelines, and related facilities.
The goal is to reach production of 70,000 barrels of oil per day.
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.
