TotalEnergies Chief Executive Patrick Pouyanne announced the investment at an investment conference in Paris on Thursday, saying the funds would be deployed across several projects, including new drilling operations in Tierra del Fuego and an expansion of gas production in the Neuquen province.
The company expects to spend between $4 billion and $5 billion over the next decade on expanding gas production in Neuquen, Pouyanne said.
“We want to enhance production to 16 million cubic metres per day,” he said.
TotalEnergies already has a significant position in Argentina's energy sector, accounting for roughly a quarter of the country's natural gas production, according to information published on the company's website.
The planned investment comes as the company pursues broader production-growth targets. TotalEnergies has told investors it aims to increase overall energy output by about 4% annually through 2030, while targeting oil and gas production growth of between 2% and 3% a year from 2030 to 2035.
Milei courts foreign investment
The announcement coincides with Argentine President Javier Milei's visit to France as his government seeks to attract international investment into strategic industries.
Milei is scheduled to meet French President Emmanuel Macron in Paris on Thursday, with Argentina highlighting opportunities in sectors including energy, mining and infrastructure.
The government has increasingly promoted the country's oil and gas resources as a potential engine of economic growth, particularly the enormous Vaca Muerta shale formation in Patagonia.
Vaca Muerta is one of the world's largest unconventional oil and gas reserves and has become central to Argentina's ambitions to expand domestic energy production, reduce its reliance on imports and generate additional export revenue.
The formation produced about 670,000 barrels of oil and 95 million cubic metres of natural gas per day in August, according to consultancy GKC. That represented approximately 72% of Argentina's total oil production and 62% of its gas output.
Its growing importance has made Vaca Muerta a cornerstone of Argentina's long-term energy strategy.
Vaca Muerta at centre of export ambitions
Argentina's state-owned energy company YPF expects Vaca Muerta to become an increasingly important source of foreign currency for the country. The company projects that the formation could generate $50 billion in export revenues by 2031, potentially putting the energy sector on a scale comparable with Argentina's powerful agricultural industry.
For TotalEnergies, the planned investment provides an opportunity to expand its presence in a country with rapidly growing unconventional oil and gas production.
The projects in Tierra del Fuego and Neuquen will form part of the company's wider investment programme, while the expansion of gas output is expected to strengthen Argentina's ability to supply its domestic market and develop its export potential.
Pouyanne's announcement also underlines the growing interest among international energy companies in Argentina's shale resources, as the government seeks billions of dollars in foreign investment to develop infrastructure and increase production.
With Vaca Muerta already accounting for the majority of the country's oil and a substantial share of its gas output, Argentina is seeking to build on that growth and establish itself as a larger energy producer and exporter.