On April 13, 2026, Resolution No. 484/2026 (the “Resolution”) issued by the Ministry of Economy was published in the Official Gazette of the Argentine Republic. Through this Resolution, the ratio between the present value of the expected net cash flow (excluding investments) during the first three years from the initial capital disbursement and the net present value of the planned capital investments during such period was modified, increasing the threshold from 30% to 35%.
This threshold constitutes a requirement for an investment to be considered long-term and eligible for inclusion in the RIGI, taking into account that the lower the ratio, the longer the time required to recover the investment, as this indicator increases to the extent that the project generates higher cash flows in its initial years.
The issuance of the Resolution follows the inclusion, through Decree No. 105/2026, of projects related to the exploration and production of new onshore oil and gas developments.
Such projects present specific investment and capital recovery structures, characterized by a faster initial recovery of investments, followed by the need for continuous reinvestment to sustain production levels throughout the life of the project. Therefore, the 30% threshold may not adequately reflect the economic and financial structure of hydrocarbon projects, making it necessary to adjust such threshold to 35%.
With respect to investment projects in other sectors covered by the RIGI, based on technical reports, it has been concluded that the increase in the ratio does not alter or distort the long-term nature of such projects.
The Resolution entered into force on the date of its publication in the Official Gazette.
