Phoenix eyes $6-billion Vaca Muerta expansion as Argentina boosts shale incentives
(Bloomberg) - Phoenix Global Resources, the Mercuria-backed crude producer, is preparing a $6-billion expansion in Argentina’s Vaca Muerta shale, as new government incentives aim to accelerate upstream investment and production growth.
The company plans to apply for Argentina’s RIGI investment program in the coming days, targeting development of acreage on the eastern flank of the basin, along with a potential new asset under acquisition, CEO Pablo Bizzotto said.
President Javier Milei has expanded the RIGI framework to include oil drilling, offering tax incentives and legal protections designed to improve project economics and reduce policy risk. The move is expected to support increased drilling activity and attract foreign capital to Argentina’s shale sector.
“RIGI takes your asset and relocates it virtually to a developed country,” Bizzotto said, pointing to improved returns and greater confidence in long-term investment conditions.
Phoenix’s multi-year investment plan includes roughly $1 billion already deployed since the program’s introduction in 2024. The company is also evaluating the addition of a third drilling rig as part of its growth strategy.
See also: Argentina expands incentives to spur Vaca Muerta shale oil investment
Production could increase more than 260% from current levels of about 22,000 bpd by the end of the decade, positioning Phoenix among the faster-growing operators in the basin.
The expansion comes as Vaca Muerta output continues to rise, with Argentina’s total crude production approaching 900,000 bpd, driven largely by shale development. Higher global oil prices and improving export capacity are further supporting growth, as operators position Argentina as a more significant contributor to global supply.
