Green light for Argentine oil: lower export duties and the return of capital to historic basins

The national government delivered one of the strongest signals to the energy sector in years: the progressive elimination of export duties on conventional oil, a move aimed at restoring competitiveness, attracting new investment, and reactivating production in mature basins that have sustained Argentina’s hydrocarbon activity for decades. With Neuquén and Santa Cruz joining the framework already launched with Chubut, the country is consolidating a fiscal and regulatory environment the market has long demanded to invest with a long-term horizon.

The agreement between the national government, provincial authorities, companies, and labor unions establishes a shared-commitment structure: the State advances with reducing export duties to ease direct export costs; provinces adjust royalties and fees to improve project profitability; and operators commit to maintaining investment plans, activity levels, and employment. This coordinated framework — driven by the teams of Luis Caputo (Minister of Economy), Diego Santilli (Minister of the Interior), and Manuel Adorni (Chief of Cabinet) — seeks to reactivate wells, bring equipment back into operation, improve efficiency, and prevent Argentina from having to import crude for its refining system in the coming years.

For producing provinces, the agreement represents far more than fiscal relief. In Chubut, the direct impact exceeds USD 370 million that will return to the industry to support activity in the Golfo San Jorge Basin. In Neuquén, the alignment between conventional development and Vaca Muerta enhances the attractiveness of both chains. In Santa Cruz, the revision of fiscal charges and operator commitments provides a real opportunity to slow the natural decline of mature fields.

The government maintains that lowering taxes is not merely a fiscal gesture but a strategic decision to strengthen a more predictable business climate. “Lower taxes mean more production and more jobs,” Adorni summarized when announcing the agreements. The rationale is straightforward: a country seeking foreign exchange, employment, and federal development cannot penalize a sector that has consistently proven its ability to invest, export, and innovate — even under adverse conditions.

The elimination of duties on conventional oil, together with the creation of competitiveness tables that bring together the national government, provinces, companies, and unions, marks a turning point. Argentina is once again sending the international market a message that had long been absent: stable rules, lower costs, and institutional cooperation that enables long-term projects. In a global context where demand for heavier and medium crude remains firm, the country is repositioning itself to capture investment, support production, and turn its mature basins into a renewed driver of activity and employment.