Key Points
— Phoenix Global Resources, backed by Swiss trader Mercuria, is filing a $6 billion investment plan under Milei’s RIGI incentive regime for Vaca Muerta shale expansion
— Phoenix targets 260% production growth to roughly 80,000 barrels per day by decade’s end, from a current base of 22,000 bpd
— Argentina’s total crude output has hit 900,000 bpd — a 21st-century record — with one-third now exported, as Brent trades above $110
The Rio Times, the Latin American financial news outlet, reports that Vaca Muerta investment is accelerating under Milei’s incentive regime. Phoenix Global Resources, the Argentine shale producer backed by Swiss commodity trader Mercuria Energy Group, is filing a $6 billion development plan under the RIGI (Régimen de Incentivo para Grandes Inversiones) within days, according to CEO Pablo Bizzotto.
The filing covers expansion in the eastern side of the Patagonian shale formation plus a new asset in another area of the basin that Phoenix is close to acquiring. Approximately $1 billion has already been deployed since the RIGI took effect in 2024, with the remainder spread across a multi-year capital program.
The RIGI Effect
Milei’s decision to extend the RIGI to oil drilling — the regime originally targeted mining and energy infrastructure — has triggered a wave of filings. Tecpetrol and Pampa Energía have announced their own multi-billion-dollar RIGI submissions. The program offers tax benefits that directly improve shale economics plus legal guarantees protecting companies from the political interventions that plagued Argentina’s energy sector for decades.
Bizzotto framed the impact bluntly: the RIGI “virtually transports you to a developed country within your asset.” He added that the legal certainty matters more than the financial incentives — a direct reference to the history of price controls, export restrictions, and capital controls that drove Exxon, TotalEnergies, and Equinor to exit Argentine upstream assets in recent years.
Argentina’s Oil Boom in Numbers
Argentina’s daily crude production recently surpassed 900,000 barrels — a 21st-century record — with the majority now coming from Vaca Muerta shale. Roughly one-third of output is exported. Phoenix alone targets 260% growth from its current 22,000 barrels per day, potentially reaching approximately 80,000 bpd by the end of the decade.
The timing aligns with Brent crude above $110 amid the Iran conflict. Argentine shale operators see the supply disruption as an opportunity to position as reliable alternative suppliers — a narrative that gains credibility as the Vaca Muerta Sur pipeline approaches completion, expected to begin shipping crude within approximately one year.
The Mercuria Bet
Mercuria founded Phoenix nearly a decade ago and holds approximately 90% of the company, which was delisted in 2022. The Swiss trader stayed when major international oil companies left, a persistence its leadership attributes to local partner José Luis Manzano, a politically connected Argentine businessman with experience navigating the country’s economic crises.
The $6 billion commitment represents a significant bet that the Milei framework will hold. The president has legally banned direct price interventions on oil — the tool every previous Argentine government used to contain inflation at the expense of producer economics. Instead, Milei has used indirect mechanisms: delaying fuel tax increases and raising biofuel blending ratios to soften pump prices.
The Test
Argentina’s domestic oil market now operates at export parity pricing — meaning local prices track international benchmarks. Bizzotto called this the most powerful signal of the Milei era for foreign investors. But with Brent above $110 and Argentine consumers facing the pass-through, the political temptation to intervene will intensify.
For Phoenix, Tecpetrol, Pampa Energía, and the broader Argentina investment thesis, the next 12 months are the real test: whether Milei can sustain market pricing through an oil shock without reverting to the interventionist playbook that has defined Argentine energy policy for a generation.