Pan American Energy

Investments

PAE kicks off 2026 with $375 million bond at 7.75% to fund Vaca Muerta and LNG

With a focus on shale development and the LNG project, the proceeds will be used to support the company’s aggressive investment plan in Argentina and to refinance existing liabilities. The bond, with an implied 11-year maturity and principal repayments in three annual installments starting in year nine, saw solid demand that allowed it to be priced in the middle of the initial book range of $300 million to $500 million.

EU-Mercosur: What would be traded each year in billions of euros — Oil is Mercosur’s top export to Europe, with metal mining products also in the top

Competitive advantages

EU-Mercosur deal: Key impacts on Vaca Muerta, LNG and mining

By combining the European Union’s engineering expertise and innovation capacity with Mercosur’s unique geological endowment, the treaty will make many energy projects more economically attractive.

The Neuquén Basin closed 2025 with a historic record of more than 23,000 fracturing stages, a 34% jump in productivity compared with 2024.

New record in the Neuquén Basin

Vaca Muerta closed 2025 with more than 23,000 fracturing stages, a 34% productivity jump

With 1,791 stages, December reflected a slight slowdown, coming in below the annual monthly average of 1,982 stages and well off the record set in May at 2,588. YPF continued to dominate activity with 778 stages, accounting for 43% of the monthly total.

Projects under RIGI: Investment commitments already exceed $24.8 billion in strategic projects, particularly in energy and mining.

Energy and mining investments

RIGI map: Approved projects and those still pending for 2026

With a portfolio that already exceeds 27 submitted projects and investment commitments topping $33 billion, extending the deadline to 2027 could unlock additional investment and new projects, further expanding the country’s energy and mining frontier.

The World Economic Forum’s organizers confirmed Milei’s participation.

International roadmap

Javier Milei confirmed for Davos 2026: with a focus on reforms, Vaca Muerta, and LNG exports

In his previous address, Milei emphasized economic freedom and tax reforms as tools to fight poverty, casting the state as a problematic actor. This time, the Argentine president will focus on deregulation of the energy sector and Argentina’s role as an LNG supplier from the Vaca Muerta shale.

Various routes are being studied to transport Argentine gas to Brazil, all requiring investments of billions of dollars.

Projects with regional impact

Vaca Muerta: Five most studied routes to export Argentine gas to Brazil

Argentine gas exports to Brazil are already operational, albeit at modest initial volumes, with significant growth projected through 2030. Routes and methods for scaling up are under consideration.

The Cerro Dragón block (in green) is the one currently drawing all the attention in the San Jorge Gulf Basin.

Milestone in the San Jorge Gulf Basin

Cerro Dragón: PAE confirms shale gas test, opening a new window of opportunity for the basin

Initial production tests at Cerro Dragón yielded promising results for converting the block to an operation now focused on unconventional resources.

Frédéric Barnaud of SEFE with Rodolfo Freyre of Southern Energy

The deal will run for eight years

Southern Energy signed an agreement with a German state-owned company to export LNG starting in 2027

It is the largest LNG sales operation from Argentina in terms of both volume and duration. The agreement was signed by Rodolfo Freyre of Southern Energy South America (SESA) and Frédéric Barnaud of Germany’s SEFE. The deal further strengthens Vaca Muerta’s position as an international player.

Vaca Muerta and its workers are powering Argentina’s energy surge

Vaca Muerta has become the standout driver of Argentina’s energy production

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