In brief

On September 4, 2026, the Argentine Executive Branch issued Executive Order No. 868/2026 (the “Executive Order”), introducing new measures to strengthen the enforcement of Law No. 26,659 regarding hydrocarbon activities on the Argentine Continental Shelf. This law not only prohibits certain hydrocarbon activities carried out without Argentine authorization on the continental shelf, including the area surrounding the Falkland Islands (Islas Malvinas), but also imposes restrictions that may extend to direct, and indirect shareholders, affiliated entities, and certain service providers connected to such activities.

Among other measures, the Executive Order designates the Ministry of Foreign Affairs, International Trade and Worship (the “Ministry of Foreign Affairs”) as the enforcement authority, establishes an expedited sanctions procedure, and introduces specific compliance requirements for projects seeking admission to the Incentive Regime for Large Investments (RIGI in the Spanish acronym) and for parties interested in obtaining hydrocarbon permits and concessions.

In focus

The Executive Order strengthens oversight mechanisms regarding hydrocarbon activities carried out in areas subject to Law No. 26,659, including maritime zones associated with the Falkland Islands (Islas Malvinas), South Georgia, and the South Sandwich Islands.

Key features of the measure include:

• Change of enforcement authority. The Ministry of Foreign Affairs is designated as the enforcement authority for Law No. 26,659, consolidating responsibilities related to the investigation and sanctioning of violations under an approach aligned with Argentina’s foreign policy.
• Enhanced coordination among public agencies. Bodies within the Federal Public Administration must report to the enforcement authority, within five business days of becoming aware of them, any facts that may constitute conduct prohibited under the law.
• Specific sanctions procedure. The Executive Order establishes specific deadlines for administrative proceedings, including ten business days for the submission of a defense and ten business days for the issuance of the corresponding decision, which must be published in the Official Gazette and notified to the Secretariat of Energy.
• New requirements for RIGI projects. Single Project Vehicles (Vehículos de Proyecto Único or the Spanish acronym VPUs) applying for admission under RIGI must submit a sworn statement confirming that neither the project nor any individuals or entities holding direct or indirect interests in it engage in, or will engage in, conduct prohibited under Law No. 26,659. In addition, the enforcement authority under that law must be consulted before any decision on the application is issued.
• Impact on the hydrocarbon sector. Applicants seeking permits, concessions, authorizations, or licenses under the Hydrocarbons Law (No. 17,319) must also submit sworn statements confirming compliance with Law No. 26,659. For corporate entities, this requirement extends to both the company itself and its direct and indirect ownership interests.