HOUSTON, Nov 12 (Reuters) - The cost of doing business in Argentina remains challenging despite promising geology and progress by the government of President Javier Milei to foster the oil economy, Chevron's Vice Chairman Mark Nelson said on Wednesday.

"Clearly the geology is good," he said at a question and answer session during the company's investor day presentation in New York City.

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Chevron has exploration and development interests in the Vaca Muerta formation in southern Neuquen province, where estimated ultimate recovery per well is 50% higher than the average seen in the prolific Permian basin in Texas.

Crude produced from the area competes with Arab Light crude and is highly desirable after blending, Nelson said. Still, costs to drill a well there are currently 35% higher than what the company is seeing in the Permian.

"Our hopes would be that capital controls would be reduced, that some of the tax burden, and workforce flexibility would be increased, so taxes coming down, and the ability to manage people," Nelson said.

https://www.reuters.com/business/energy/chevron-says-argentina-costs-still-challenging-despite-reform-progress-2025-11-12/