Ormachea Called for State Policy to Sustain Vaca Muerta Development

Carlos Ormachea, president of the Chamber of Exploration and Hydrocarbon Production (CEPH), stated that Vaca Muerta offers a significant opportunity to generate foreign exchange and fiscal revenue, though he cautioned that development of the deposit alone is insufficient to resolve Argentina's structural challenges.

During the inauguration of the chamber's new headquarters in Buenos Aires, Ormachea emphasized the need for predictability and a state policy enabling sustained investment flows over the coming years. "There is an illusion that we will be saved by Vaca Muerta. But that is not the case," he stated.

CEPH projections indicate that sector investment could exceed US$15 billion annually over the next decade, with a peak surpassing US$20 billion in 2027. Under an expansion scenario, hydrocarbon exports would reach more than US$41 billion per year by 2035.

The chamber also estimates that the energy trade surplus could exceed US$37 billion annually within that same timeframe. To achieve this scenario, Ormachea called for protecting strategic projects and building long-term agreements that reduce investment barriers.

The CEPH president stressed that Vaca Muerta must be conceived as a national development project capable of expanding Argentine suppliers' and companies' participation in the value chain. "We have an industry project that also belongs to the country. Promising but challenging. It is very difficult to execute and do it well," he noted.

Along those lines, he anticipated collaborative work with other business organizations to remove barriers that could hinder new investments. The meeting brought together representatives from the energy, industrial, construction, and mining sectors, including Martín Rapallini, Gustavo Weiss, and Roberto Cacciola.

With information from Mejor Energía.