French energy company TotalEnergies is set to invest about $10 billion in Argentina over the next decade as it expands its oil and gas operations in the country.

Chief Executive Officer Patrick Pouyanne disclosed the investment plan on Thursday at an investment conference in Paris.

The funds will be directed towards several projects, including drilling new wells in Tierra del Fuego and increasing gas production in Neuquen province.

Pouyanne said the company plans to raise its gas output to 16 million cubic metres per day, with between $4 billion and $5 billion expected to be invested in expanding production over the next 10 years.

TotalEnergies currently contributes about a quarter of Argentina’s gas production, according to information from the company.

The investment comes as Argentina seeks to attract more foreign capital into strategic sectors, including energy, mining and infrastructure.

The country is looking to further develop its Vaca Muerta shale formation, which has become a major driver of its oil and gas industry.

Vaca Muerta produced about 670,000 barrels of oil and 95 million cubic metres of natural gas per day in August, accounting for 72 per cent of Argentina’s oil production and 62 per cent of its gas output, according to consultancy GKC.

The development of the formation is also expected to increase Argentina’s energy exports. State-owned YPF has projected that Vaca Muerta could generate about $50 billion in export revenue annually by 2031.

TotalEnergies has set a target of increasing its overall energy production by four per cent annually through 2030, while aiming for oil and gas output growth of between two per cent and three per cent from 2030 to 2035.