The Argentine government has confirmed the elimination of export duties for conventional crude oil, following a meeting involving Economy Minister Luis Caputo, Interior Minister Diego Santilli, and Chubut Governor Ignacio Ramírez. The national and provincial governments have entered into a memorandum of understanding aimed at eliminating the 8% tax in Chubut. The agreement emerges amidst a backdrop of declining conventional oil production. The majority of Argentina’s oil production is derived from the expansive shale oil and gas field known as Vaca Muerta, located in the southern province of Neuquén. Provincial governments from various producing regions express concerns regarding potential job losses, given that Vaca Muerta is capturing a significant share of investment. The tax incentive is set to be extended to additional conventional oil and gas-producing provinces, including Santa Cruz, Neuquén, Río Negro, and Mendoza, according to the statement.
The decision aims to maintain the operational status of mature oil fields, a move the government argues will enhance investment predictability and safeguard employment opportunities. Companies are dedicated to maintaining production levels and executing the requisite investment strategies, the statement added. Approximately two-thirds of Argentina’s proven oil and gas reserves—66% of oil and 64% of gas—are located within the shale deposits of Vaca Muerta, as indicated by the most recent report from the Argentine Institute of Oil and Gas. In September of the previous year, the nation’s overall oil output reached 132,575 cubic meters, translating to roughly 833,807 barrels per day. This figure included 87,583 cubic meters classified as unconventional and 44,992 cubic meters categorized as conventional.
Last year, state-owned energy company YPF initiated the Andes Plan, which entails concentrating primarily on Vaca Muerta while retreating from conventional oil fields and divesting from its mature oil fields—those nearing the end of their productive lifespan. In February 2025, YPF made the strategic decision to permanently exit Chubut’s San Jorge Gulf oil field, following the announcement of the sale of its final oil field in the region, Manantiales Behr. This region has played a pivotal role in the evolution of the national oil and gas sector.
A source informed that the decision to abolish export duties on mature oil fields will not impact the company, as all of its crude exports originate from Vaca Muerta. The limited volume of crude oil obtained by YPF from mature fields undergoes processing in refineries to meet domestic demand. The measure is expected to provide advantages to exporters of heavy crude oil, including Pan American Energy and Pecom, according to the source.