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U.S. Delegation Weighs Vaca Muerta Investments as Industry Seeks Lower Costs and Clear Rules

Stable rules with free dividend flows are seen as prerequisites for foreign investment.

Overview

  • Representatives from the ArgentinaTexas Chamber met with Energy official Daniel González and oil-company procurement teams to explore cost-cutting and new services for Vaca Muerta.
  • González estimated service prices in Vaca Muerta run roughly 35–40% higher than the Permian, pressuring margins for export projects such as LNG and pipeline gas to Brazil.
  • Financing remains costly for local players, with recent bonds and loans near 7.5–8.5% and Argentina’s country risk topping 1,100, prompting firms to pace external fundraising.
  • Chevron and TotalEnergies executives reiterated calls for predictable regulation, investment protection and dividend repatriation, while TotalEnergies’ Sergio Mengoni said international capital is indispensable.
  • LNG export plans continue in parallel, with two Golar FLNG vessels slated for 2027–2028 and YPF evaluating additional units with Shell and Eni, though further decisions are pending.