Policy Shift Puts Argentina’s Shale Ambitions Front and Center

Proposed RIGI expansion aims to reduce upstream risk, signaling support for Vaca Muerta investment as producers prepare for potential regulatory and tax stability

18 Dec 2025

Argentina is preparing to expand its main investment incentive programme to include upstream oil and gas, signalling a renewed push to accelerate development of the Vaca Muerta shale basin.

The government plans to extend the Régimen de Incentivo para Grandes Inversiones, or RIGI, beyond pipelines and export infrastructure to cover exploration and production. The proposal still requires formal approval, but officials say it is intended to reshape how investors assess risk and long-term returns in South America’s largest shale play.

If adopted, the changes would offer clearer rules and longer-lasting incentives, with a focus on tax stability and regulatory certainty. Those factors are critical for shale projects, where companies must commit large sums of capital and sustain drilling activity for years before generating returns.

Domestic and international producers are monitoring the proposal closely. State-controlled YPF is expected to take a leading role, with large-scale development plans that depend on predictable policy conditions. International groups, including Chevron, have previously cited currency controls and abrupt policy shifts as key obstacles to expanding operations in Argentina. The proposed framework seeks to address those concerns, particularly around profit repatriation and long-term tax treatment.

The implications extend beyond the oil and gas sector. A more stable investment environment could support employment, stimulate oilfield services activity and strengthen Argentina’s ambition to increase energy exports. Independent producers such as Vista Energy could also benefit if steadier rules improve access to financing, provided environmental and permitting standards are maintained.

Uncertainty remains over the scope of the incentives. Not all projects are expected to qualify, and effective coordination between national and provincial authorities will be required, given provincial control over hydrocarbon resources. Critics have also questioned whether the fiscal cost of the scheme can be justified by higher output and investment.

Even so, the policy direction marks a shift. By aligning incentives more closely with the economics of shale development, the government is signalling that Vaca Muerta will remain central to its growth strategy, while leaving key details to be settled in implementation.