Chevron Calls for More Reforms to Boost Argentina's Shale Potential

Chevron Corp. said President Javier Milei must take further steps to deregulate Argentina's economy and free up investors from capital controls to maximize the potential of the Vaca Muerta shale basin according to Chevron. Chevron's Vice President for Oil, Mark Nelson, expressed optimism about recent reforms but stressed that more work remains to make the region competitive with U.S. shale producers according to Chevron.

The company is considering applying for benefits under Argentina's RIGI (Large Investment Incentive Regime) program for two of its less developed blocks in the Patagonia shale formation. This program offers tax incentives and protection from future capital controls according to Chevron.

Nelson emphasized the importance of durable policy changes, noting that Argentina's geological advantages position it well for long-term success in the global energy market according to Chevron.

Why Did This Happen?

Chevron has been a major player in Argentina's Vaca Muerta since 2013, when it became the first foreign investor in the region according to Chevron. The company currently produces about 74,000 barrels a day from the basin and plans to triple that output over the next decade according to Chevron.

To achieve this goal, Chevron is looking to apply for RIGI benefits, which include tax breaks and business-friendly incentives according to Chevron. The company cited a 35% cost gap between the Vaca Muerta and the Permian Basin in the U.S. as a key challenge that must be addressed according to Chevron.

RIGI was introduced in October 2024 and has since attracted a range of large-scale investments, including in the energy and mining sectors according to Shale24. Chevron noted that the program has helped the company secure more stable conditions for long-term investment according to Chevron.

How Has the Mining Sector Been Affected?

While Chevron is focused on the Vaca Muerta, Argentina's RIGI program has also driven significant investment in the mining sector according to Shale24. As of March 2026, mining accounted for six of the 12 projects approved under the program, with more than $26 billion in investment commitments according to Shale24.

The government expanded RIGI to include upstream oil and gas projects with a minimum investment of $600 million, signaling a continued focus on energy development according to Shale24.