TotalEnergies plans nearly €8.9 billion investment push in Argentina’s oil and gas sector

French energy major TotalEnergies is preparing a new investment cycle worth close to €8.9 billion in Argentina, expanding its exposure to shale oil, natural gas and offshore developments as the company deepens its long-standing presence in the country.

Chairman and CEO Patrick Pouyanné outlined the investment portfolio during Argentina Week in Paris, where the company presented plans spanning Neuquén’s Vaca Muerta formation and offshore fields in Tierra del Fuego.

The programme includes a potential €4.4 billion investment in the San Roque block, where TotalEnergies sees the possibility of developing a shale oil project capable of producing up to 60,000 barrels per day.

The French group is also planning additional investment in Aguada Pichana, one of its main natural gas assets in Neuquén, as it seeks to raise production from around 14 million cubic metres per day to approximately 16 million cubic metres per day.

A new €4.4 billion Vaca Muerta project

San Roque represents one of the most significant components of TotalEnergies’ new Argentine portfolio.

The company is evaluating a large-scale shale oil development in the block and intends to seek access to Argentina’s Large Investment Incentive Regime (RIGI) for the project.

If fully developed, San Roque could reach production of approximately 60,000 barrels of oil per day.

The initiative would add another major oil development to Vaca Muerta at a time when Argentina is increasing crude production and expanding infrastructure designed to move more hydrocarbons towards international markets.

TotalEnergies has been active in Neuquén for decades and was among the early companies to develop multi-stage fractured shale gas wells in the province.

Over the past ten years, the group says it has invested close to €5.3 billion in its Argentine operations.

Gas production set for further expansion

Natural gas remains another central part of TotalEnergies’ strategy in Argentina.

The company currently accounts for roughly one quarter of the natural gas supplied to the domestic market, making it one of the country’s largest producers.

At Aguada Pichana, TotalEnergies intends not only to maintain its current output but to increase production to around 16 million cubic metres per day.

Sustaining those volumes requires continuous drilling and investment because of the production profile of unconventional reservoirs.

The company estimates that additional development of the gas asset could require several billion euros over the coming years.

Higher output would also strengthen Argentina’s ability to replace energy imports and expand gas exports to regional and potentially global markets.

Offshore project moves ahead in Tierra del Fuego

TotalEnergies is simultaneously advancing another major project in southern Argentina.

The company is studying an offshore development in Tierra del Fuego involving investment of up to €1.3 billion.

The project, named Alberdi, is expected to involve between three and five subsea wells and would use new offshore technology to develop gas resources in the region.

TotalEnergies has operated in Tierra del Fuego for decades and already holds a significant position in Argentina’s offshore gas industry.

The project would expand that footprint at a time when offshore resources are gaining renewed strategic relevance for the country’s energy sector.

Investment conditions enter the equation

Pouyanné also highlighted changes in Argentina’s investment framework as an important factor behind the company’s willingness to evaluate new long-term projects.

Among the issues cited by the executive were the ability to distribute dividends abroad and the incentives provided under the RIGI for large-scale investments.

For international energy companies, both factors can influence investment decisions involving projects with multi-year development periods and billions of euros in upfront capital.

TotalEnergies has operated in Argentina for almost 50 years, giving the group experience across several economic and regulatory cycles.

Its latest investment plans suggest that Argentina is gaining renewed weight within the company’s global portfolio, particularly as Vaca Muerta develops simultaneously as a source of natural gas and crude oil.

Argentina seeks to turn resources into exports

The French group’s plans come as Argentina accelerates development of the infrastructure required to transform rising hydrocarbon production into export capacity.

Vaca Muerta has increasingly shifted from a domestic energy asset towards a potential source of international oil and gas sales.

For TotalEnergies, the next stage combines three distinct opportunities: more natural gas from Aguada Pichana, a new shale oil development at San Roque and additional offshore production in Tierra del Fuego.

If the projects move ahead as planned, they would represent one of the largest new European energy investment programmes currently under consideration in Argentina.