President Javier Milei's RIGI incentive program is drawing new interest from major oil producers after expanding to include shale oil development. YPF SA, Vista Energy SAB, and Pampa Energia SA have all indicated plans to apply for the program, which offers 30-year tax breaks and streamlined customs rules.

Known by its Spanish acronym RIGI, the program was expanded on Feb. 19 to spur development of virgin oil fields in the Vaca Muerta shale patch. A dedicated pipeline and crude export port are under construction, while the US shale industry is exploring opportunities in Argentina as prime acreage becomes scarce. YPF CEO Horacio Marin said the expansion would help develop the full Vaca Muerta potential.

For Matias Cattaruzi, an equities analyst at Adcap, incorporating shale oil drilling into RIGI will accelerate investments in blocks originally planned for 2029-30 development. He estimates the tax breaks alone could boost returns by up to 12%. The program has already attracted applications for energy and mining projects requiring more than $50 billion in total investment.