Argentina to remove export duties for conventional crude oil

The Argentine government will eliminate export duties for conventional crude oil, the administration confirmed in a statement after a meeting between Economy and Interior ministers, Luis Caputo and Diego Santilli, and Chubut Governor Ignacio Ramírez. The national and provincial governments signed a memorandum of understanding to remove the 8% tax in Chubut. The agreement comes as conventional oil production is declining. Most of Argentina’s oil now comes from the huge shale oil and gas field, Vaca Muerta, in the southern province of Neuquén.  Provincial governments from other producing regions are worrying about possible job losses, as Vaca Muerta dominates investment. The tax break will be rolled out to other conventional oil and gas-producing provinces, such as Santa Cruz, Neuquén, Río Negro, and Mendoza, the statement said. The decision seeks to keep mature oil fields active, which the government says would provide predictability for investments and protect jobs. Companies are committed to sustaining production and carrying out the necessary investment plans, the statement added. Overall, around two thirds of Argentina’s proven oil and gas reserves — 66% of oil and 64% of gas — are in Vaca Muerta’s shale deposits, according to the Argentine Institute of Oil and Gas’s latest report. Last September, the country’s total oil production amounted to 132,575 cubic meters (approximately 833,807 barrels of oil per day), of which 87,583 m³ were unconventional and 44,992 m³ were conventional. Last year, state-owned energy company YPF started the Andes Plan, which consists of focusing almost exclusively on Vaca Muerta and withdrawing from conventional oil fields, divesting from its mature oil fields — those in the later stages of their productive lifespan.  In February 2025, YPF decided to permanently withdraw from Chubut’s San Jorge Gulf oil field, after announcing the sale of its last oil field in the area, Manantiales Behr. This region has been crucial to the development of the national oil and gas industry.A source at YPF told the Herald that the decision to eliminate export duties on mature oil fields will not affect the company because all of its crude exports are from Vaca Muerta. The small amount of crude oil YPF gets from mature fields is processed in refineries for domestic consumption. The measure will benefit exporters of heavy crude oil, such as Pan American Energy and Pecom, the source added.