(Bloomberg) — Argentina’s plans to lure investors to finance shale oil and gas infrastructure can withstand short-term political risk, according the country’s energy chief, Daniel Gonzalez.
A drilling rig shown in the Vaca Muerta shale region of Argentina. Image: YPF
President Javier Milei’s sweeping market-oriented reforms over the past two years have helped shale producers and transporters access global credit, including a signature project-finance deal for a pipeline to export crude. But after voters in Argentina’s biggest province took the wind out of Milei’s sails in a Sept. 7 election, and gave a boost to the leftist opposition, markets have sold off and the country’s risk premium has jumped.
“When you build a pipeline for the next 20 or 30 years, you’re not looking at a provincial election last week,” Gonzalez said on the sidelines of an event in Buenos Aires. “It might not be the time to issue debt, but, while you have an open economy, it doesn’t impact long-term projects at all.”
Shale producers are still trying to firm up several major projects, including a new pipeline to supply floating liquefaction units and an even-more ambitious LNG terminal.
Argentine shale investors need future governments to “maintain free-market policies,” Ana Simonato, Chevron Corp.’s country manager in Argentina said this week at a separate Buenos Aires oil conference.
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