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up to date · reviewed Oct 3, 2026
Not in force yet

Mendoza proposes a hydrocarbons law with a biddable royalty

Bill from the Executive Branch of Mendoza (Sep 18, 2026)
pendingPROVINCIAL Energy and natural resources

Mendoza's bill sets a 15% reference royalty that each company can bid on, rules for unconventional development and priority for local suppliers. It is before the Legislature.

The other rules on this subject43

Energy: free export of hydrocarbons and gasDecretos 1057/2024 and 1060/2024in force
The State reorders the trunk gas pipelines and forces firm transportation contracts to be redrawnRes. SE 66/2026 (Official Gazette, Mar 13, 2026) + Res. ENARGAS 409/2026in execution
Hydrocarbons: the pre-export local offer fallsSE Res. 166/2026 (Official Gazette, Jul 22, 2026)in force

What changed and who it applies to

What changed
Nothing has changed yet: it is a bill. It replaces the current law, which sets a general royalty of 12% and allows it to be lowered to 5%. Under the bill, the reference royalty is 15% and each company can bid above or below it when entering a tender; the amount of investment carries more weight in the award. It allows royalties below 5%, on technical grounds, for inactive wells, heavy crude and enhanced recovery. It expressly brings in unconventional development, gives priority to local suppliers and workers, requires a public sworn statement every two years that includes local suppliers, and sets an oversight fee of up to 0.8% of royalties. prob Sep 18, 2026 ↗
In force
Not in force: the Executive Branch sent it to the Legislature on Sep 18, 2026. prob Sep 18, 2026 ↗
Who it applies to
Operators bidding in future tenders for areas in Mendoza, and oilfield service companies: the bill gives Mendoza's unconventional play rules of its own and rewards reactivating mature fields, which means demand for drilling, well intervention and enhanced recovery. thesis Sep 18, 2026

Our reading

thesis · R7 If it passes, Malargüe becomes another basin in which to sell services for unconventional development and for reactivating old wells, with the royalty as a competitive variable in each tender. What decides whether the door closes on suppliers from outside is the wording of the local priority, which we have not yet seen: whether it sets a quota or only a preference. thesis

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Ignacio Aredez
Analysis and curation: Ignacio Aredez
Head of Despegue
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  • 20+ years in technology, 15 of them in data and AI, for clients across Europe and the Americas
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How to read the seals →
  verif primary source · prob primary source pending · unconf a source said it · estim our own calculation · thesis our reading · the date belongs to the datum, at the precision its source allows