Tax relief for conventional oil production: government cuts export duties on mature fields

The government published Decree 59/2026 in the Boletín Oficial, or Official Gazette, introducing a tax relief measure specifically targeting crude oil production from conventional (mature) fields.

The measure aims to halt the structural decline affecting mature fields in Patagonia, preserve jobs, and restore competitiveness in a segment facing rising operating costs and natural production declines due to reservoir depletion.

The main update modifies the export duty framework established under Decree 488/2020.

For conventional oil, the thresholds determining the retention rate have been raised:

• Base Value: $65 per barrel (previously $45 under the general regime).
• Reference Value: $80 per barrel (previously $60).
• The reference price remains the five-month average of ICE Brent first-line quotes, published monthly by the Energy Secretariat.

With the new parameters:

• When Brent trades at or below $65, the retention is 0% (no export duty).
• When Brent reaches or exceeds $80, the maximum 8% rate applies.
• In the intermediate range (between $65 and $80), the rate increases gradually and proportionally with the price.

This adjustment significantly expands the range in which conventional production can be exported duty-free or with minimal duties, providing concrete benefits under moderate or low-moderate price scenarios — the most frequent for much of the crude cycle in recent years.

The decree follows agreements between the Ministry of Economy, the provinces of Chubut, Neuquén and Santa Cruz, and the Chamber of Hydrocarbon Producers (CEPH). These jurisdictions have already implemented royalty reductions, concession reconversions, and other local fiscal incentives to support activity in mature fields. The national decree complements these efforts with a federal signal.

Impact on the production map

Several independent and mid-sized operators have taken a leading role in conventional production after YPF’s gradual exit from mature areas.

• Santa Cruz (mainly northern San Jorge Gulf Basin): Patagonia Resources S.A., Clear Petroleum S.A., Roch Proyectos S.A.U., Azruge S.A., Brest S.A., Quintana E&P Argentina S.R.L., and Quintana Energy Investments S.A., which recently took over blocks ceded by YPF.
• Chubut: Pan American Energy (PAE) — the leader in conventional production with fields like Cerro Dragón —, PECOM (Pérez Companc group) in El Trébol-Escalante and Cañadón Perdido, Crown Point Energy in El Tordillo, and YPF remnants in transition.
• Neuquén (and part of Río Negro for mature areas): Although nonconventional production dominates, operators like Petrolsur Energía, Oilstone Energía, and smaller stakes from major players such as PAE or Vista Energy maintain conventional output in legacy fields. Many of these companies participate in CEPH initiatives to revitalize the conventional segment.

Important: The benefit applies only to conventional crude (tariff code NCM 2709.00.10). The original Decree 488/2020 framework remains unchanged for unconventional crude (mainly Vaca Muerta). To prevent blending or abuse, the Energy Secretariat has 60 days to define how to certify the actual proportion of conventional crude in each export.

Implementation and objectives

The decree takes effect the day after publication, though full impact depends on complementary rules issued by the Energy Secretariat within two months. The measure has been reported to the Permanent Bicameral Congressional Committee.

With this change, the government aims to incentivize marginal investments in conventional fields, strengthen the hydrocarbon sector’s export capacity, and support the sustainability of an industry still critical to employment and the regional economy in Patagonia.

Full text: https://www.boletinoficial.gob.ar/detalleAviso/primera/337898/20260129.