Argentina sees energy investment reaching $15 bln next year, fueled by deregulation
BUENOS AIRES, Sept 10 (Reuters) - Argentina's government expects investments in the country's energy sector to reach up to $15 billion in 2025 and $16.5 billion in 2026 thanks to its market deregulation push, Energy Secretary Eduardo Rodriguez Chirillo said on Tuesday.
The estimated spending includes additional funds that flow from the country's RIGI investment promotion regime, which range from $2 billion to $2.5 billion per year, according to Rodriguez.
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Speaking at an event organized by Shell, Rodriguez argued the measures will lead to a better business climate to attract investment.
"We're at record production," Rodriguez said. "These (new) rules will help shore up investments that are already in development."
The government of libertarian President Javier Milei has promoted a series of reforms aimed at reducing state intervention in the economy, including a major deregulation push.
The policies seek to facilitate energy exports, in addition to deregulating local prices along with offering more access to foreign currency.
Rodriguez said planned energy investments are currently seen around $12.5 billion in 2025 and $14 billion in 2026. The RIGI scheme could tack on up to $2.5 billion each year, he said.
Shell alone invests between $500 million to $600 million in Argentina a year. That could increase under the RIGI mechanism and when exchange restrictions are limited, country head German Burmeister said.
"The RIGI is a way to attract investments that would not otherwise arrive," he told reporters, without providing a figure for how much the firm's investments could increase.
Shell currently produces 50,000 barrels of oil a day in Argentina and plans to hit 70,000 barrels by the end of 2025.
Thanks to increased activity at the Vaca Muerta formation - the world's second-largest shale gas reserve and fourth-largest for shale oil - Argentina will also be able to reverse a long-running energy deficit, Daniel Gonzalez, a senior energy and mining official, said.
The nation's energy trade surplus is expected to reach between $4 billion and $5 billion this year, Gonzalez said at the event, while the 2025 surplus will likely double this year's level.
The primary obstacle to achieving the surpluses is the country's macroeconomic situation, he added.
(Reporting by Eliana Raszewski; Writing by Natalia Siniawski and Kylie Madry; Editing by David Alire Garcia and Deepa Babington)