Chevron has submitted an application to participate in Argentina’s Large Investment Incentive Regime (RIGI) for a proposed $13.8bn (19.69tn pesos) unconventional oil project.
The project is located in the El Trapial area of the Vaca Muerta shale formation.
Chevron confirmed the filing on Tuesday, stating that the plan would be among the largest new investments in the country’s shale sector, pending government approval, reported Reuters.
In a statement to Offshore Technology, Chevron said: “We have submitted our RIGI application. It has not yet been approved.
“Chevron Argentina has submitted an application under RIGI for a new upstream development project in El Trapial, with an estimated investment of $13.8bn, subject to approval by the Argentine government.
“Chevron commends Argentina’s government for making meaningful progress toward unlocking Argentina’s world-class energy resource. Frameworks such as RIGI, which contribute to the regulatory predictability and incentivise long-term investment decisions, are key steps for Argentina’s energy industry.”
The Vaca Muerta region contains one of the world’s largest shale oil and gas reserves and is seen as a key component of Argentina’s strategy to grow exports and increase foreign currency earnings.
Chevron operates in Argentina primarily through its subsidiary, Chevron Argentina, focusing on crude oil and natural gas production in Neuquén province.
The company’s interests cover the El Trapial conventional field, which it acquired in 1999.
In 2022, Chevron Argentina received a 35-year concession from Neuquén province for unconventional oil and gas exploitation in the El Trapial east area.
This concession gives Chevron Argentina two 100%-owned and operated blocks within El Trapial. It includes El Trapial-Curamched for conventional resources and El Trapial-Este for unconventional resources, together covering 111,000 net acres.
In addition to El Trapial, Chevron holds a non-operated 50% stake in the Loma Campana and Narambuena concessions through a separate partnership with YPF.
Chevron was quoted by Reuters, as saying: “Chevron commends Argentina’s Government for making meaningful progress toward unlocking Argentina’s world-class energy resource.
“Frameworks such as RIGI, which contribute to the regulatory predictability and incentivise long-term investment decisions, are key steps for Argentina’s energy industry.”
Argentine President Javier Milei’s administration has promoted the incentive scheme, which is designed to attract international capital into areas such as energy, mining and infrastructure.
The RIGI was adopted by the National Congress in July 2024 through Law No. 27,742 and later set out in Decree No. 749/2024.
Its aim is to encourage large-scale investment by introducing terms designed to increase predictability, stability and legal security for projects above $200m.
Benefits include tax, customs and foreign exchange advantages.
In April this year, Chevron entered into an asset exchange deal with Petróleos de Venezuela, aiming to expand its role in Venezuela’s heavy oil sector while transferring certain gas assets.
