French oil company TotalEnergies (EPA: TTE) plans to invest $10 billion in Argentina, Chief Executive Patrick Pouyanne said on Thursday at a conference in Paris.
The investment will be spread across different projects, including the drilling of new wells in Tierra del Fuego and an expansion of its gas production in Neuquen.
“We want to enhance production to 16 million cubic metres per day,” Pouyanne said, adding that investments of $4 billion to $5 billion are expected over the next 10 years.
TotalEnergies accounts for around a quarter of Argentina’s gas production, according to the company’s website. The energy firm is targeting growth of 4% in energy output annually through 2030 and between 2% and 3% in oil and gas output between 2030 and 2035, it told investors earlier this week.
Pouyanne spoke at an investment conference in Paris as Argentine President Javier Milei visits France as part of a broader push to attract foreign capital. Milei is due to meet French President Emmanuel Macron later on Thursday, with Buenos Aires promoting opportunities in strategic sectors such as energy, mining and infrastructure.
Argentina’s Vaca Muerta shale formation, one of the world’s largest unconventional oil and gas reserves, produced 670,000 barrels of oil and 95 million cubic metres of natural gas per day in August. That accounted for 72% of Argentina’s total oil output and 62% of its gas production, according to consultancy GKC.
The formation has become a cornerstone of Argentina’s energy growth strategy and a key source of future export revenue. State-run energy company YPF projects that by 2031 Vaca Muerta will generate $50 billion in export dollars, potentially rivaling Argentina’s agriculture sector.
(Reporting by Lucinda Elliott and Inti Landauro. Additional reporting by Dominique Patton in Paris and Eliana Raszewski in Buenos Aires. Editing by Sudip Kar-Gupta, David Goodman and Mark Porter)
