Río Negro regulates incentive regime for mature fields

The Government of Río Negro regulated the provincial incentive regime for conventional production through Resolution 560/26 of the Secretariat of State for Energy and Environment. The measure implements Provincial Decree 136/26 and seeks to attract investment, reactivate wells and increase extraction volumes at mature fields.

The program establishes a reduced royalty rate of 6%, applicable only to incremental production derived from new investments. Base production is excluded from the benefit, which may be maintained for a maximum of ten years or until the concession expires, whichever comes first. In certain contracts, the additional volume will also be exempt from the 3% supplementary contribution.

To join the program, concessionaire companies must submit a Plan of Activities and Complementary Investments, detailing the works, planned expenditures and expected production increase. In addition, they must define a base production line certified by an external auditor, which will allow monthly calculation of what portion of the volume corresponds to the investments made.

The regulation includes controls on the committed tasks and results achieved. Companies must report their progress, substantiate investments and submit annual certifications from independent auditors. The Province may inspect the projects, review filings and request additional documentation.

The enforcement authority will have 30 administrative business days to resolve requests once complete documentation has been submitted. Each project will take effect starting the month following its approval, although the benefits will remain subject to verification of the initial investments and incremental production.

The regime was created in response to declining conventional production and aims to extend the useful life of mature fields through the reactivation and optimization of wells and facilities. The initiative also seeks to sustain activity along the hydrocarbon chain and the associated jobs in the province.

With information from Energía Online.