ARGENTINA · ENERGY
Key Facts
- The country Argentina, led by President Javier Milei, is home to Vaca Muerta, one of the world’s biggest shale oil and gas formations.
- What happened Neuquén province’s state oil company awarded exploration rights in eight Vaca Muerta areas on Wednesday 21 October 2026.
- The company Central Puerto, a New York-listed Argentine power generator, won the Corralera Noroeste Vaca Muerta block through its Patagonia Energy subsidiary.
- The totals The winners promise US$230.1 million of exploration work and US$180.7 million in entry bonuses, plus 11 horizontal wells.
- Other winners Petroquímica Comodoro Rivadavia (PCR) took three areas, while GeoPark, JPM Energía, Phoenix-Continental and a company linked to José Luis Manzano took one each.
- Power Index Argentina ranks 4th of 14 in The Rio Times Latin America Power Index, with 61.2 points (October 2026 edition).
- The catch These are exploration permits, so no new oil or gas is expected soon, and the work is spread over five years.
Central Puerto, an Argentine power generator listed in New York, won a Vaca Muerta block through a subsidiary on Wednesday 21 October 2026. Patagonia Energy took Corralera Noroeste, one of eight areas handed out by the province’s oil company, Gas y Petróleo del Neuquén (GyP).
The award moves a US-listed utility into shale exploration, the field that is turning Argentina into an energy exporter. See the Central Puerto profile and the report on Argentina’s energy trade surplus.
The Vaca Muerta Block Central Puerto Won
Patagonia Energy won the Corralera Noroeste Vaca Muerta block with US$78.7 million of planned work and a US$22.1 million access bonus, according to EcoJournal. Its three horizontal wells run 3,000 metres sideways, with 150 fracturing stages, the high-pressure steps that crack shale to release oil and gas.
Central Puerto bought 100% of Patagonia Energy, with the deal closing on 16 April 2026, according to LexLatin. Patagonia Energy already held two conventional oil and gas areas in Neuquén, Aguada del Chivato and Aguada Bocarey, covering about 110 square kilometres.
How Neuquén Ran the Round
GyP launched its first 2026 round in May and offered 15 blocks. The province received 20 proposals from ten business groups, and offers came in for eight blocks, according to Diario Río Negro.
Governor Rolando Figueroa led the award, with Energy Minister Gustavo Medele and GyP president Guillermo Savasta also taking part. Diario Río Negro reports that a second round in November will re-offer the seven blocks without bids.
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The Money and the Work Promised
Together the winners committed US$230.1 million for exploration and US$180.7 million in access bonuses paid to the provincial treasury. The bonuses are due immediately, while the capital spending is spread over five years, according to iProfesional.
The work programme covers 11 horizontal wells and 3D seismic surveys over about 725 square kilometres. In seven areas GyP gets a 10% free carry, meaning it takes part without paying its share of costs, and Chasquivil Sur carries 15%.
Who Won the Other Seven Areas
Petroquímica Comodoro Rivadavia (PCR) took three areas and pledged US$55.6 million of work and US$71.5 million in bonuses for the three together. GeoPark, an oil producer with Colombian capital, won Corralera Noreste with US$34 million of work and a US$60.5 million bonus.
JPM Energía won Pampa de las Yeguas II Noreste with US$26.1 million of work, and Phoenix-Continental Resources won Corralera Sur with US$18.9 million. Selva María Oil, which iProfesional links to Mendoza businessman José Luis Manzano and his Integra Capital group, won Chasquivil Sur with US$16.8 million.
Why This Vaca Muerta Block Drew Three Bidders
The Corralera Noroeste area attracted offers from Phoenix-Continental, Patagonia Energy and GeoPark when the first proposals were opened in August, according to El Economista. That made it one of the more contested blocks, alongside La Tropilla I, which drew four bidders.
That made it one of the more contested blocks, alongside La Tropilla I, which drew four bidders. La Tropilla I went to PCR, and Corralera Noroeste to Patagonia Energy, which offered the round’s largest exploration commitment.
What It Means for US Readers
Central Puerto’s American depositary shares trade in New York, so US holders now own a stake in a company moving into oil and gas exploration. The Vaca Muerta block ties part of its growth to drilling results, not only to electricity prices.
Vaca Muerta is also where US companies and lenders look for Argentine oil and gas supply. The wells will not add barrels soon, so any payoff is a long-term bet on turning exploration blocks into production concessions.
What Is Not Known
The drilling timetable for the Vaca Muerta block and the way Central Puerto will fund the US$78.7 million have not been published. The size of the oil and gas resource under the block is also untested.
The winners must still sign association contracts, which the Energy Ministry approves and the governor formalises by decree. Only then does the first four-year exploration period start, according to Diario Río Negro.
More: Argentina news in English, every day from The Rio Times.
Frequently Asked Questions
What did Central Puerto win in Vaca Muerta?
Its Patagonia Energy subsidiary won the Corralera Noroeste Vaca Muerta block in Neuquén province. The plan is three horizontal wells and US$78.7 million of work.
Who awarded the blocks?
Gas y Petróleo del Neuquén, the province’s state oil company, awarded eight areas in Round 1/2026. Governor Rolando Figueroa led the award.
How much will the winners spend?
The winners promised US$230.1 million of exploration work and US$180.7 million in entry bonuses. The spending is spread over five years.
Will this raise oil output soon?
No, the award report says the wells will not bring in oil in the short term. They aim to cut geological risk so the blocks can later become production concessions.
What is Vaca Muerta?
It is a large shale formation in Argentina’s Neuquén Basin, rich in oil and natural gas. It has become the country’s main source of new energy supply.
Sources: iProfesional, 22 October 2026; Diario Río Negro, 21 October 2026; EcoJournal, 21 October 2026; El Economista, 21 August 2026; LexLatin, 8 May 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief