Argentina's energy investments are expected to reach $15 billion next year due to deregulation
The Energy Secretary Eduardo Rodriguez Chirillo stated on Tuesday that Argentina expects to see investments in its energy sector reach $15 billion by 2025, and $16.5 billion by 2026 as a result of the market deregulation efforts.
According to Rodriguez, the estimated expenditure includes additional funds flowing from the country's investment promotion regime RIGI, which Rodriguez estimates ranges from $2 billion to $25 billion per year.
At an event hosted by Shell, Rodriguez said that the measures would lead to a more favorable business climate and attract investment.
"We're at record production," Rodriguez said. These (new) regulations will help to shore up investment that is already in development.
The libertarian government of Javier Milei, president of the Spanish Republic, has promoted a number of reforms to reduce state intervention in economic affairs. This includes a major push for deregulation.
These policies aim to promote energy exports and deregulation of local prices, as well as a greater access to foreign currencies.
Rodriguez stated that the planned energy investment is currently estimated at $12.5 billion by 2025, and $14 billion by 2026. He said the RIGI scheme can add up to $2.5 billion per year.
Shell invests alone between $500 and $600 million in Argentina each year. German Burmeister, the country's head, said that this could rise under the RIGI and when restrictions on exchange are reduced.
He told reporters that the RIGI was a way of attracting investments to his firm, which would otherwise not have occurred. However, he did not provide a number for how much their investments might increase.
Shell produces 50,000 barrels a day of oil in Argentina, and plans to reach 70,000 barrels at the end of 2025.
Daniel Gonzalez, a senior official in the energy and mining sector, stated that Argentina's long-standing energy deficit will be reversed thanks to the increased activity at Vaca Muerta, the second-largest shale-gas reserve and the fourth-largest shale-oil reserve.
The Nation's
Energy trade surplus
Gonzalez, who spoke at the event said that the surplus for this year is expected to be between $4 billion and 5 billion dollars, whereas the surplus in 2025 will probably double the level of this year.
He added that the macroeconomic conditions of the country are the main obstacle to surpluses. (Reporting and writing by Eliana Razewski, Kylie Madry and Natalia Siniawski; editing by David Alire Garcia & Deepa Babington).
(source: Reuters)
