The province of Neuquén has outlined an ambitious plan for 2025, focusing on strengthening its position as a national energy powerhouse by fully leveraging the potential of Vaca Muerta. Gustavo Medele, Neuquén’s Minister of Energy, has set three strategic priorities for the year: expediting the granting of Unconventional Hydrocarbon Exploitation Concessions (CENCH), developing critical infrastructure to optimise productivity, and addressing environmental liabilities in areas close to urban centres.
Neuquén is committed to maximising the output of Vaca Muerta, which closed 2024 with a record-breaking oil production of 467,461 barrels per day, representing a 22.56% growth compared to 2023. According to Minister Medele, expediting new CENCH approvals is essential, particularly given the legal deadline for operators to convert their concessions by 31 December 2028, as established by Law 17.319.
This year will focus on reaching technical and legal agreements to ensure greater certainty and predictability for exploration projects. Medele emphasised the groundwork carried out in 2024 to lay the foundation for these approvals, ensuring that future concessions are granted more efficiently and transparently, while strengthening legal security.
The development of northern Neuquén, particularly around Rincón de los Sauces, will be a cornerstone of the 2025 energy agenda. Key fields like El Trapial (operated by YPF and Chevron) and Los Toldos II Este (Tecpetrol) require significant investments in infrastructure, including new roads, water networks, and housing solutions for workers. Unlike Loma Campana, which benefits from logistical support from Neuquén’s capital, the distance and overuse of current routes in the north necessitate the creation of a self-sustaining development hub.
Additionally, the government aims to work with operators to build pipelines that will enable the division of large concession areas into smaller, more manageable ones. This sectorisation will enhance evacuation capacity and concentrate productivity, ensuring the growing energy demand can be met efficiently.
Aligning with its commitment to sustainability, Neuquén’s government will prioritise the management of environmental liabilities, particularly in urban areas such as Neuquén City, Centenario, and Plottier. Medele highlighted the importance of reaching agreements with the industry to decommission inactive wells and to repurpose those that can benefit from new technologies. This effort is crucial to balancing energy sector growth with the social and environmental well-being of nearby communities.
The success of this plan will not only depend on coordination with operators but also on attracting investments to strengthen Neuquén’s energy ecosystem. Collaboration between the government and private sector players will be vital to achieving these objectives, while maintaining a focus on sustainability and generating economic opportunities for the region.
Neuquén’s 2025 strategy reaffirms its role as a leader in Argentina’s energy transition. By combining innovation, infrastructure, and environmental responsibility, the province will further cement Vaca Muerta’s status as a key engine of development, creating value not just for Neuquén but for the entire country.
