Quarterly Summary
During the quarter under review, the oil market tightened further, driven by a continued loss of supply from the ongoing conflict in the Middle East. An environment of increased inventory squeezes and heightened geopolitical risk elevated average 2Q 2026 oil prices to US$102.63, up 27% from the 1Q 2026 average of US$80.72. Prices began to ease towards the end of the quarter as expectations grew that trade flows and production would gradually normalise given the progress towards what was thought, at the time, would be a lasting US-Iran peace agreement. However, this optimism was short-lived, with the conflict enduring into the third quarter, continuing to elevate prices.
Argentina saw a wave of investment pledges, sparked by the early March 2026 extension of the Large Investment Incentives Regime (RIGI) to include oil and gas production projects. This underlined the government’s support in accelerating production growth, particularly in the Vaca Muerta shale play, through improved tax, customs, foreign exchange benefits and a 30-year guarantee of regulatory stability. Thus, in 2Q 2026, a total of six applications were submitted by operators with a combined investment commitment of US$54.9 billion.
RIGI applications were submitted by Chevron, Pan American Energy, YPF, GeoPark, Tecpetrol and Pluspetrol, with upwards of 3,000 wells planned to be drilled by these operators across timelines ranging from one to 25 years. YPF submitted the largest application with a US$25 billion oil expansion programme, which could see the drilling of 1,152 wells to plateau its output at 240 kbpd from 2032. In recent times, YPF has been the most aggressive operator in the Vaca Muerta, with a 2026 capex budget of US$5.7 billion (70% of its total capex), up from 66% in 2025. By 2030, YPF plans to invest 88% of its capex in the Vaca Muerta, backed by the RIGI. As of July 2026, only Pampa Energy’s US$4.5 billion application has been accepted, with over 100 wells planned to be drilled in the Rincón de Aranda block in the Vaca Muerta.
Argentinian Operators 2Q 2026 RIGI Applications & Well Plans
Source: Operator Announcements, Industry Reports
With the RIGI programme extension and ongoing development activity, Westwood forecasts 1,118 well spuds in Argentina this year, up 2% from 2025. Development wells account for 98% of planned spuds, reflecting the continued focus on advancing established acreage.
Onshore drilling activity has been on an upward trend since the low of 430 spuds in 2020. Since 2023, over 1,000 wells have been spudded annually, with onshore spuds in 2026 anticipated to be 4% higher than 2023 levels (1,071 vs 1,118). There is a possibility of a significant uptick in well spuds post-2026, given pending RIGI applications and an expectation for further submissions to be made.
Argentina Wells Drilled 2019-2026
Source: Westwood Wells & Production Outlook 2026-2032 Report
This edition of the quarterly newsletter is broken down into two sections: Oil and Gas Activity and Geothermal Activity. The oil and gas activity section covers rig contracting, drilling activity, licencing and field development activities, and select financing activity. Meanwhile, the geothermal activity section covers, drilling, rig contracting and tendering, as well as licensing and field development activities.
Among the key highlights of the oil and gas activity section were several rig contract awards across various regions, including two awards to Silver City Drilling, one in Australia and another in Indonesia. Financing activity was more muted during the quarter, compared to 1Q 2026. Two drilling rig deals were reported during 2Q 2026: Akita Drilling taking over Paramount Resources and Helix Exploration acquisition of Treasure State Drilling. These deals transferred a combined seven drilling rigs to the buyer companies in the USA.
Finally, the quarterly highlight in the geothermal market was Iceland Drilling’s award of a drilling contract in Saint Kitts and Nevis. Iceland Drilling will provide a rig to spud six wells for the Nevis Geothermal Development Programme starting in September 2026. Also, four visible geothermal tenders were launched, including for the provision of a rig in Tanzania to drill three slim hole wells in the Ngozi project.
Ben Wilby, Manager – Onshore Energy Services
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Michela Francisco, Research Analyst – Onshore Energy Services
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This is a preview of the quarterly newsletter, available to subscribers of Global Land Rigs. The full newsletter includes details on key M&A deals, drilling programmes, contractual awards and other news. Please email [email protected] to subscribe.
