Argentina investment promotion plan tops $27B

BUENOS AIRES, May 18 (UPI) — Argentina’s mega investment incentive system, known as RIGI, surpassed $27 billion in approved investment commitments this week after the government approved two new mining projects under the program aimed at attracting foreign capital.

The initiative, promoted by the administration of President Xavier Miley, has now approved 16 projects, while another 20 proposals are subject to official review.

RIGI is part of Miley’s economic strategy to increase foreign exchange inflows and accelerate development in sectors considered vital to Argentina’s economy, including oil, natural gas, mining, infrastructure and renewable energy.

The latest approvals include the expansion of the PSJ Cobre Mendocino copper project in Mendoza province and the Cauchari-Olaroz lithium project in Jujuy.

“Today the Appraisal Committee approved the inclusion of two mining projects in RIGI,” Economy Minister Luis Caputo wrote on Twitter.

Caputo said both initiatives are expected to create more than 8,000 direct and indirect jobs. He also said the San Jorge project demonstrates Mendoza’s potential to grow its mining activity and move toward becoming one of Argentina’s first copper-exporting regions.

According to official data, the total volume of approved and pending projects submitted under the program has now reached approximately $95 billion.

Among the biggest proposals seeking approval is LLL Oil, a huge export-oriented oil project floated by state-controlled energy company YPF. The initiative is linked to the development of the Vaca Muerta shale formation, one of the world’s largest unconventional oil and gas reserves.

YPF said the project would require an investment of $25 billion over the next 15 years, making it the largest proposal ever submitted under the RIGI framework.

YPF President Horacio Marin said at the event that the initiative could generate more than $100 billion worth of exports.

“Today we have submitted an application to join RIGI for the LLL Oil Project: a $25 billion investment to accelerate the development of Vaca Muerta,” Marin wrote. “This is Argentina’s most important oil export program and the largest project presented under RIGI.”

According to Argentinian news outlet Infobae, the project involves drilling 1,152 wells and aims to reach production of 240,000 barrels of oil per day starting in 2032.

YPF said all production will be for international markets and will be transported through the VMOS pipeline system. The company estimates that the project could generate about $6 billion in annual exports starting in 2032 and create about 6,000 direct jobs during the development phase.

Approved RIGI projects are spread across the provinces of Neuquén, Río Negro, San Juan, Mendoza, Salta, Buenos Aires Province, Catamarca, Jujuy and Santa Fe. Projects include oil and gas infrastructure, renewable energy development, ports and lithium, copper, gold and silver mining operations.

To qualify for the program, companies must commit to a large-scale investment and meet a series of government requirements. Minimum investment starts at $200 million, although oil and gas field projects may require between $300 million to $600 million depending on the type of development.

Projects considered strategically important for long-term exports require a minimum investment of $2 billion.

Companies must complete at least 40% of committed investments within the first two years, submit production and export plans and demonstrate sustained economic impact.

RIGI provides tax, customs and foreign exchange incentives, including a reduction in the corporate tax rate from 35% to 25%, export-related exemptions and greater flexibility for foreign exchange operations.

The program also allows companies to seek international arbitration in the event of legal disputes, a measure the government considers necessary to provide greater certainty for foreign investors.