Pampa Energía has applied to join the Large Investment Incentive Scheme (RIGI) for the development of an oil and gas treatment plant at its Rincón de Aranda field in the Neuquén basin in Vaca Muerta, Argentina, with an investment of $426m.

With the plant's expected start-up in 2026, Pampa Energía projects to export crude oil valued at approximately $1.2bn starting in 2027.

The initiative involves the construction of a central processing facility (CPF) to enhance the processing, storage, and transportation of hydrocarbons.

The CPF is a critical component of Pampa Energía's comprehensive investment plan in Rincón de Aranda, where the company is investing $1.5bn to increase its oil production tenfold.

Pampa Energía CEO Gustavo Mariani said: “The construction of this plant and its associated infrastructure is key to strengthening our operation in Vaca Muerta. It will allow us to capture the production of the entire field, which covers an area of 240km², and connect to the main transportation systems.”

The project's scope also includes the construction of oil and gas pipelines that will link the production with existing networks, including the Perito Moreno gas pipeline and the Vaca Muerta Sur oil pipeline.

Additional facilities such as processing plants, storage terminals, and pumping stations are also part of the planned infrastructure.

Currently, Pampa is executing the initial phase of the project, having successfully connected four wells, which have resulted in a production capacity of 6,000 barrels per day (bpd).

The development of the Rincón de Aranda project is estimated to cost $1.6bn through 2026, the company said in its earnings presentation.

Shortly, Pampa plans to integrate an additional 24 wells into the system, aiming to boost production to 20,000bpd. By 2027, the company's goal is to achieve a daily production rate of 45,000 barrels.