Released November 20, 2025 | SUGAR LAND
Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)
Summary
The Argentine government agrees to remove export duties on conventional crude oil to promote new investments in provinces overshadowed by Vaca Muerta's growth.
Argentina Measure is Meant to Protect Oil Production
Argentine government officials met with the governor of Chubut Province to finalize an agreement to eliminate export duties on conventional (non-shale) crude oil. The government aims to protect oil production amid a national focus on shale outputs from the Vaca Muerta region.
However, the parties did not provide a date for the change to the current export rules.
Conventional crude oil production in Argentina has been in decline for years. In 2009, production averaged around 600,000 barrels per day (BBL/d), but has dropped to 313,000 BBL/d in 2024, according to Argentina's government. This has been the result of volume declines and growing focus on shale production from Vaca Muerta, the world's fourth-largest shale oil reservoir.
The government's decision to remove export duties on conventional production is aimed at enhancing profits for companies operating these types of operations, with the objective of maintaining production volumes and investment to continue operations.
Among the plans are projects to increase production, reactivate equipment and wells for mature basins, and sustain job opportunities in the sector.
Conventional vs Shale Provinces
The policy was pushed by the governor of Chubut, the province with the highest conventional oil production, who sees a risk of lower investments in his province as companies eye Vaca Muerta's fast expansion. Last year, crude volumes from the province averaged around 130,000 BBL/d, almost 40,000 BBL/d below 2009 levels.
According to the government, the new program will start in Chubut and be progressively extended to other conventional oil-producing provinces, such as La Pampa, Mendoza, Santa Cruz and Salta.
Meanwhile, the Neuquen province, which produces a fraction of the conventional oil production, is the big winner in Vaca Muerta's expansion, representing almost 100% of the 390,000 BBL/d of non-conventional crude volumes produced in 2024. Rio Negro is another province that is now producing shale oil, although it began only last year.
Almost 55% of Argentina's crude production in 2024 came from shale output, while throughout this year the volumes have accounted for 61.3% of the total.
YPF's Focus
YPF, the national energy company, announced its Plan 4x4, focusing investments on Vaca Muerta and divesting from other conventional areas. As part of this, the company launched the Andes project in 2024, a strategy aimed at divesting from conventional oil areas in Chubut, Mendoza, Neuquén, Río Negro, Salta and Tierra del Fuego.
In July, the company reported the transfer of 28 conventional oil areas and the opening of another 16 assets for transfers.
Key Takeaways
- The government agrees to eliminate export duties from conventional oil production.
- The measure aims to promote investments in conventional oil areas and protect jobs.
- Conventional oil production has declined from roughly 600,000 BBL/d in 2009, to 313,000 BBL/d in 2024
- Peru's mining sector received US$3.9 billion in investments through September.
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