Tecpetrol’s unconventional oil development project was approved under Argentina’s Large Investment Incentive Regime (RIGI), representing a total investment of US$6.4 billion.

The Argentine government has approved Tecpetrol’s Los Toldos II Este investment project under the Large Investment Incentive Regime (RIGI). The project involves total capital expenditure of US$6.4 billion, with more than US$2 billion expected to be deployed by the end of 2027. The unconventional oil development will include a 10% participation by GyP, the energy company owned by the Province of Neuquén.

The investment is also expected to generate significant activity across Argentina’s industrial and services SME sector. Nearly 800 domestic companies are currently involved in construction-related work, many of them participants in the ProPymes program. Tecpetrol is targeting production of 70,000 barrels of oil per day from Los Toldos II Este by mid-2027, which would bring the company’s total Vaca Muerta output to close to 100,000 barrels per day.

Los Toldos II Este builds on Tecpetrol’s experience since 2017, when the company launched Fortín de Piedra, becoming the first operator to undertake a project of this scale in Argentina’s unconventional gas sector. Today, Fortín de Piedra supplies approximately 16% of Argentina’s natural gas demand and played a key role in demonstrating Vaca Muerta’s gas potential.