France's TotalEnergies vows to invest nearly US$10 billion in Argentina

French oil and gas giant TotalEnergies will invest nearly US$10 billion in the coming years to expand its operations in Argentina, the firm’s chairman and chief executive, Patrick Pouyanné, announced on Thursday.

Pouyanné, who said the investment would be focused on the Vaca Muerta shale formation and offshore projects, made the announcement during the President Javier Milei’s visit to Paris for the latest edition of the ‘Argentina Week’ investment roadshow.

"I am happy to announce that we have close to US$10 billion of investments ahead of us in Argentina," he said at the event.

Pouyanné met Milei beforehand to discuss the company's plans, including a US$1.5-billion offshore development in Tierra del Fuego Province.

The pair agreed to name the development ‘Alberdi,’ in honour of Juan Bautista Alberdi, one of the architects of Argentina's 1853 Constitution and one of Milei’s political idols.

In Neuquén Province, TotalEnergies plans to increase gas production at its Aguada Pichana project and develop the San Roque oil field in Vaca Muerta, with the latter potentially requiring around US$5 billion in investment.

Pouyanné said the company had already invested almost US$6 billion in Neuquén over the past decade and aimed to raise gas production to 16 million cubic metres per day.

TotalEnergies is currently Argentina's largest natural gas producer, accounting for around a quarter of domestic supply, according to Pouyanné.

The chief executive credited Milei for unlocking new investment, noting steps to allow companies to repatriate dividends and tax and regulatory benefits offered under the RIGI investment incentive scheme.

TotalEnergies has operated in Argentina for almost 50 years. In addition to its oil and gas activities in Vaca Muerta, the company has significant offshore interests in Tierra del Fuego.