Neuquén Governor challenges Vaca Muerta royalty distribution

Neuquén Governor Rolando Figueroa has called for a revision of the current royalty distribution and federal tax-sharing laws, citing significant inequities in how resources from the Vaca Muerta formation are allocated. Figueroa noted that while Neuquén produces the non-conventional oil and gas, provinces like Buenos Aires receive a 2% royalty without contributing to the actual extraction process.

Beyond royalty disputes, the Governor addressed concerns regarding the economic pressures on the region. He criticized certain service companies, such as Halliburton, for allegedly charging significantly higher rates in Vaca Muerta compared to the Permian Basin in Texas. He also highlighted the need for the national government to guarantee the ‘zona fría’ (cold zone) regime to mitigate high gas tariffs in Patagonia.

To support regional growth, Figueroa is pushing for infrastructure investments and the diversification of Neuquén’s economy through agro-industrial and tourism projects, including new irrigation developments.