Chevron invests $13.8 billion in Argentina and applies for tax breaks program

The U.S. Oil Major announced on Tuesday that Chevron has applied to Argentina's 'incentive regime' for large investments in order to finance a $13.8 billion unconventional 'oil' project in the 'El Trapial' area of Vaca Muerta. This would be one of the largest new bets 'on the shale patches in Argentina.

The filing is still awaiting government approval but it's the latest indication that global 'energy' companies are positioning themselves for long-term growth at Vaca Muerta. It's a cornerstone in the hopes of the country to increase exports and earn foreign currency.

Chevron commended Argentina's Government for its progress in unlocking Argentina's "world-class" energy resource, the company stated in a press release.

The government of President Javier Milei has promoted the RIGI or incentive regime 'for large -investments' as a tool to attract foreign investment into a number of strategic sectors, including energy, mining, and infrastructure.

Chevron said that frameworks such as RIGI are important steps for Argentina's Energy Industry. They contribute to?regulatory predictableness and encourage long-term investment decisions.

(source: Reuters)