Pampa Energía invests USD 1.2 billion in Mendoza to produce 50,000 barrels/day

Marcelo Mindlin, President of Pampa Energía, announces a $1.2 billion investment in the Vaca Muerta project, aimed at increasing oil production. This development is accompanied by renewable energy initiatives, promising significant economic impacts.

Share:

Gain full professional access to energynews.pro from 4.90€/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90€/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 €/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99€/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 €/year from the second year.

Marcelo Mindlin, President of Pampa Energía, announces a significant new step in the development of the energy sector by investing $1.2 billion in the Vaca Muerta project.
This initiative aims to increase oil production to 50,000 barrels per day within three years.
The investment focuses primarily on the acquisition of the remaining 50% of the Rincón de Aranda zone, previously purchased from TotalEnergies.
This project is part of Pampa Energía’s wider strategy to strengthen its position in the Argentine energy market.

Investment in renewable energies

Alongside this announcement, Mindlin also presented the Pampa Energía VI wind farm, which represents an initial investment of $260 million, out of an estimated total cost of $500 million.
The wind farm, comprising 31 Vestas wind turbines with a generating capacity of 140 MW, is the company’s sixth wind power project.
It is distinguished by its direct connection to a 500 kV high-voltage grid, marking a technological breakthrough in Argentina’s renewable energy sector.
Mindlin stresses the importance of diversifying energy sources and increasing production capacity to meet growing demand.
He also points to the positive impact of these projects on the local economy, creating jobs and stimulating economic activity.
Pampa Energía’s commitment to renewable energies is part of a global trend towards decarbonization, while meeting the country’s immediate energy needs.

Growth prospects and regulatory challenges

Pampa Energía’s expansion into the oil and wind sectors is accompanied by an analysis of the regulatory challenges that could hamper growth.
Mindlin calls on the national government to open tenders to encourage competition and facilitate private investment.
He points to the recent extension of the Néstor Kirchner pipeline, which should enable average production of 14.5 million cubic meters of gas per day by the second quarter of 2024, as an example of the importance of a solid infrastructure to support energy development.
In addition, Mindlin expresses confidence in the policies of Javier Milei’s government, particularly with regard to reducing public spending and eliminating the fiscal deficit.
These measures are seen as essential to creating an environment conducive to investment in the energy sector.
The company has also secured a 10% stake and a seat on the board of directors of the Vaca Muerta Sur oil pipeline, while considering joining the liquefied natural gas (LNG) project with Petronas.

Impact on the local market and economy

Pampa Energía’s commitment to Vaca Muerta and renewable energies could have a significant impact on the Argentine energy market.
Increased oil and gas production could help reduce the country’s energy dependency and stabilize prices on the domestic market.
In addition, the development of renewable energy projects such as the Pampa Energía VI wind farm could strengthen Argentina’s position as a key player in the regional energy transition.
Mindlin insists that these projects are not limited to economic considerations, but also aim to generate social benefits.
By creating jobs and supporting local communities, Pampa Energía seeks to establish a model of sustainable development that benefits society as a whole.

Conclusion on Argentina’s energy future

The announcement of Pampa Energía’s investment in Vaca Muerta and renewable energies illustrates a positive dynamic in Argentina’s energy sector.
Current and future projects testify to a desire to innovate and diversify energy sources.
As the country moves towards an energy transition, Pampa Energía’s commitment could play a crucial role in achieving decarbonization and sustainability objectives.
Regulatory and economic challenges remain, but the prospects for growth and positive impact on the local economy are promising.

A sudden fault on the national grid cut electricity supply to several regions of Nigeria, reigniting concerns about the stability of the transmission system.
Re-elected president Irfaan Ali announces stricter production-sharing agreements to increase national economic returns.
Coal India issues tenders to develop 5 GW of renewable capacity, split between solar and wind, as part of its long-term energy strategy.
US utilities anticipate a rapid increase in high-intensity loads, targeting 147 GW of new capacity by 2035, with a strategic shift toward deregulated markets.
France opens a national consultation on RTE’s plan to invest €100 billion by 2040 to modernise the high-voltage electricity transmission grid.
Governor Gavin Newsom orders state agencies to fast-track clean energy projects to capture Inflation Reduction Act credits before deadlines expire.
Germany’s energy transition could cost up to €5.4tn ($6.3tn) by 2049, according to the main industry organisation, raising concerns over national competitiveness.
Facing blackouts imposed by the authorities, small businesses in Iran record mounting losses amid drought, fuel shortages and pressure on the national power grid.
Russian group T Plus plans to stabilise its electricity output at 57.6 TWh in 2025, despite a decline recorded in the first half of the year, according to Chief Executive Officer Pavel Snikkars.
In France, the Commission de régulation de l’énergie issues a clarification on ten statements shared over the summer, correcting several figures regarding tariffs, production and investments in the electricity sector.
A group of 85 researchers challenges the scientific validity of the climate report released by the US Department of Energy, citing partial methods and the absence of independent peer review.
Five energy infrastructure projects have been added to the list of cross-border renewable projects, making them eligible for financial support under the CEF Energy programme.
The Tanzanian government launches a national consultation to accelerate the rollout of compressed natural gas, mobilising public and private financing to secure energy supply and lower fuel costs.
The Kuwaiti government has invited three international consortia to submit bids for the first phase of the Al Khairan project, combining power generation and desalination.
Nigeria’s state-owned oil company abandons plans to sell the Port Harcourt refinery and confirms a maintenance programme despite high operating costs.
The publication of the Multiannual Energy Programme decree, awaited for two years, is compromised by internal political tensions, jeopardising strategic investments in nuclear and renewables.
The US Energy Information Administration reschedules or cancels several publications, affecting the availability of critical data for oil, gas and renewables markets.
Brazilian authorities have launched a large-scale operation targeting a money laundering system linked to the fuel sector, involving investment funds, fintechs, and more than 1,000 service stations across the country.
A national study by the Davies Group reveals widespread American support for the simultaneous development of both renewable and fossil energy sources, with strong approval for natural gas and solar energy.
The South Korean government compels ten petrochemical groups to cut up to 3.7 million tons of naphtha cracking per year, tying financial and tax support to swift and documented restructuring measures.

Log in to read this article

You'll also have access to a selection of our best content.