The company presented a new project for Cerro Dragón that will extend the lifespan of the field, increase crude oil extraction, and generate more royalties for the province.
The investment represents a new sign of confidence from the private sector in the economic framework promoted by the Government of Javier Milei. Through his social media, Caputo highlighted the announcement and stated that the Executive continues to work alongside the provinces and companies to promote projects that generate employment, increase exports, and strengthen the national energy matrix.
The oil company Pan American Energy (PAE) announced a new investment of USD 680 million under the Large Investment Incentive Regime (RIGI), aimed at increasing oil production in Chubut and extending the lifespan of Cerro Dragón, one of the country's most important conventional oil fields.
The project was presented at the Ministry of Finance before the Minister of Economy, Luis Caputo, the governor of Chubut, Ignacio Torres, and company executives led by Marcos Bulgheroni.
The initiative aims to develop an ambitious tertiary recovery scheme at Cerro Dragón, a technology that allows for the extraction of oil that remains trapped underground after the traditional stages of exploitation have been exhausted. According to the company, this is an unprecedented development in the San Jorge Gulf basin.
As part of the plan, PAE will build 22 polymer injection plants, upgrade around 220 injection wells, and develop approximately 650 production wells. The company estimates that these works will allow for the incorporation of an additional 24 million barrels of oil during the project's lifespan and achieve an incremental production exceeding 11,300 barrels per day at its peak.
The central objective of the project is to halt the natural decline of a mature basin and sustain hydrocarbon activity in a region that has historically been key to Argentine energy production. Tertiary recovery will allow for the mobilization of crude oil that until now could not be exploited profitably, thus expanding the productive potential of the area.
In addition to the impact on production, the initiative promises a positive effect on the provincial economy. The increase in extraction will generate higher royalty revenues for Chubut and stimulate the activity of service companies, contractors, and suppliers linked to the oil industry.
The announcement adds to a series of energy investments that have begun to be channeled through the RIGI, a tool promoted by the Milei administration to attract large-scale capital and accelerate strategic projects.
