Pluspetrol Seeks Backing for $12 Billion Vaca Muerta Project with Pipeline Buildout

Pluspetrol is seeking incentives for a $12 billion Vaca Muerta development that includes new pipelines, processing plants and large-scale oil and gas production growth.

(Reuters) — Argentina's Pluspetrol is seeking to tap President Javier Milei's flagship investment incentive regime for a $12 billion shale project in Vaca Muerta, betting big on the formation that has become the centerpiece of the country's energy ambitions.

Pluspetrol has applied to join the RIGI incentive scheme to develop its Bajo del Choique-La Invernada block in Neuquen province, the company said on April 23.

The 25-year project aims to ramp up output to 100,000 barrels of oil per day through the drilling of more than 600 wells, the construction of four processing plants and new pipeline infrastructure to transport crude and gas.

The field lies in the heart of Vaca Muerta, the vast shale formation that has transformed Argentina into a fast-growing energy producer and raised hopes it could become a major exporter as well.

Pluspetrol said the development will be carried out in two stages, starting with the southern part of the area, where it expects to reach output of 50,000 barrels per day and 6 million cubic meters per day of gas. A second phase in the northern section would double that to 100,000 bpd and 12 million cubic meters per day of gas at peak production.

The investment marks a major step for Pluspetrol, which has been expanding its footprint in Argentina's shale patch, and underscores the scale of the race to build out capacity around Vaca Muerta.