By means of Decree No. 868/2026, published in the Official Gazette on September 4, 2026, the National Executive Branch amended the regulatory framework of Law No. 26,659, as amended by Law No. 26,915, with the aim of making the regime governing the oversight and sanctioning of hydrocarbon exploration and exploitation activities carried out on the Argentine Continental Shelf—particularly in the Falkland Islands, South Georgia and the South Sandwich Islands and the surrounding maritime areas—without authorization from the competent Argentine authorities, more expeditious, effective and coordinated.
The most relevant aspects for companies operating in the sector include:
- New enforcement authority: the Ministry of Foreign Affairs, International Trade and Worship has been designated as the competent enforcement authority, seeking to coordinate administrative sanctioning actions with the diplomatic strategy of the Argentine Republic.
- More expeditious sanctioning proceedings: specific rules have been established for the conduct of proceedings, including a term of 10 administrative business days for alleged offenders to submit their defenses and offer evidence.
- Duty to report: agencies and entities of the National Public Administration must notify the enforcement authority of any event that could fall within the prohibitions set forth in Section 2 of the law within 5 business days of becoming aware thereof.
- Affidavits as a compliance requirement: controls have been strengthened to prevent access to government benefits by requiring the submission of affidavits confirming compliance both in the procedure for joining the Incentive Regime for Large Investments (RIGI) and in connection with applications for exploration permits and exploitation concessions, transportation and storage authorizations, and licenses for the processing of hydrocarbons.
- Sanctions: the prohibition from operating in the country for periods ranging from 5 to 20 years remains in force, potentially affecting existing concessions, which may revert to the National Government or the provincial governments, depending on the relevant territorial jurisdiction.
The Decree strengthens the early detection and oversight mechanisms, as well as the procedural tools already provided for under Law No. 26,659. Its practical impact, however, may be significant, as the law applies not only to operators but also to those who directly or indirectly participate in such projects or provide services to them, without distinguishing between independent companies, affiliates, or entities belonging to the same corporate group. The main uncertainty currently lies in the scope that may be attributed to the potential liability of related entities that have not directly participated in operations in the disputed area.
Our Energy team can provide advice on the analysis of the new regulatory framework, the preparation and review of affidavits and certifications, the drafting of contractual compliance clauses, and the defense of clients in administrative sanctioning proceedings.