The future of energy in Argentina: a conversation with Francisco Macías

Francisco A. Macías, a partner at Marval O’Farrell Mairal since 2002, is a leading figure in the complex worlds of energy, infrastructure, and oil and gas. With a career spanning decades, which began with a vocation for diplomacy and adapted to Argentina’s economic ups and downs, his trajectory is a testament to flexibility and deep technical knowledge.

Mr. Macías has played a key role in shaping important international and local transactions. Latin Counsel had the pleasure of speaking with him to explore his passion for law, his vision of the challenges of the energy transition, and the reforms that are transforming a key sector for the country’s future.

Latin Counsel: Mr. Macías, looking back on your distinguished career, what initially attracted you to the legal profession? Was there a specific moment or influence that made you decide to become a lawyer?

Francisco Macías: My vocation was diplomacy, and to enter the Foreign Service Institute, I could choose between several careers. It was thanks to Enrique Morad, a professor at San Pablo School, that I chose to study law. Argentina’s economic ups and downs made me take a different path, and thanks to having studied law, many opportunities opened up for me.

Latin Counsel: Your academic background includes studies at the Catholic University of Argentina and the University of Siena. How did these experiences, particularly your postgraduate studies in international and European community law, influence your early legal perspective?

Francisco Macías: At the UCA, I had excellent professors and classmates, many of whom are now leading lawyers in Argentina.
The experience in Siena was thanks to a scholarship from the Italian Embassy in Argentina, and it was excellent because, in a pre-internet era, it opened up a different perspective on international law and regional integration processes. I had great professors such as Francesco Francioni, Benedetto Conforti, and Ian Brownlie.

Latin Counsel: Before joining Marval O’Farrell Mairal, you worked at Bazán, Cambré & Orts and BBVA Banco Francés. How did these early roles contribute to your professional development and ultimately lead you to specialize in your current practice areas?

Francisco Macías: BBVA was my first job as a lawyer. I learned how to interact with colleagues and bosses in a business environment, and I was in the best physical shape of my life thanks to all the running around to court.
I have fond memories of my years at Bazán Cambré & Orts, an oil boutique. That’s where I took my first steps advising oil companies, guided by great lawyers such as Mario Orts and Jaime Sánchez de la Puente, who were very generous with their experience.

Latin Counsel: Your practice areas are incredibly diverse, covering oil and gas, energy, utilities, infrastructure, natural resources, environmental law, and foreign investment. What unifies these areas for you, and where do you find the greatest intellectual challenge?

Francisco Macías: Marval is the leading law firm in Argentina and covers all practice areas exceptionally well. At each stage of my career, some practices predominated over others, depending on the context of the country and the needs of clients and the firm. Marval grew, and its teams became increasingly specialized. Thanks to this growth, today I am able to devote myself mainly to issues related to hydrocarbons and the environment.
The common denominator of all these practices is that the state plays a very important role because the public interest is very present. This interaction between the public and private sectors makes them very challenging because state interference in business requires us to anticipate changes and constantly adapt.

Latin Counsel: Given the global shift toward renewable energy, how do you see the traditional oil and gas sector evolving, and what role does legal advice play in this transition?

Francisco Macías: The energy transition undoubtedly influences the agendas of governments and companies. Although in Argentina the diversification process was led by international companies, local companies followed suit. In recent years, we have accompanied oil clients in the diversification of their businesses through the purchase or development of renewable projects. In these cases, our work began by helping them understand the legal aspects, risks, and opportunities of a new business.

Latin Counsel: Environmental law and foreign investment protection are crucial aspects of your experience. How do you balance the needs of economic development with environmental management and investor confidence in your advisory role?

Francisco Macías: In Argentina, unfortunately, the tension between the need to protect the environment and the need to achieve levels of economic development that adequately satisfy the basic rights of the population has resulted in measures that have prevented activities in some sectors, such as mining. The glacier law and regulations restricting the use of cyanide, for example, have prevented the development of important projects that would have been fundamental to the country’s economic and social development.
Such regulations must be replaced by others that regulate activity in such a way that it does not cause serious environmental impacts but allows for its execution. Miss socio Leonardo Rodriguez and Gabriel Fortuna are currently working to find a solution to this dilemma.
Unlike mining, the Argentine oil sector is very proactive in addressing this tension by providing solutions that reconcile exploitation with environmental protection. The case of fracking is an excellent example of cooperation between companies, NGOs, and the state (national and provincial) so that unconventional exploitation can take place without causing damage to the environment.

Latin Counsel: You advise clients on gas and energy regulatory matters. What are some of the key regulatory challenges facing energy companies today, particularly in Argentina and Latin America?

Francisco Macías: In Argentina, one of the main challenges is to make the transition from the hyper-regulated system with frozen prices and tariffs and subsidies that was in place for two decades to a free market system in line with the recently approved legal changes.
On the other hand, it is imperative to create the conditions for the necessary investments to be made in the development of oil and gas resources, both to guarantee the security of domestic supply and to strengthen the trade balance.
The way in which the transition is made and the respect for the rights acquired by those who invested under previous regimes will be taken into account by those who decide on future investments.
In addition, the energy transition presents great challenges and opportunities for these sectors. Argentina has enormous potential in terms of energy resources, both fossil and renewable, and an energy matrix heavily reliant on fossil fuels. But the window of opportunity for fossil fuels is increasingly limited, especially when it comes to crude oil. A crucial challenge for Argentina is to capitalize on these resources before it is too late.

Latin Counsel: From your perspective, what are the most significant legal trends currently impacting the energy and infrastructure sectors?

Francisco Macías: Although Argentina will feel the effects later than other countries, climate change is the main cause of legal and regulatory changes with the greatest impact on the energy and infrastructure sectors.
For example, measures to promote decarbonization and diversification of energy matrices, including limiting the use of fossil fuels and reducing greenhouse gas emissions.
In addition, these changes will lead to an increase in climate litigation between private parties, between private parties and the state, and directly between states.
Another trend that will continue to consolidate is the increase in environmental and social standards for the development of infrastructure projects and extractive activities.

Latin Counsel: As a former professor of public international law, how has your academic training influenced your practical approach to law, particularly in cross-border transactions?

Francisco Macías: The international law tool I used most professionally was foreign investment protection mechanisms, especially international investment promotion and protection treaties. Several foreign clients who invested in Argentina had to initiate international arbitration before ICSID or under UNCITRAL rules after the 2002 crisis. And, although these disputes are less frequent today, we take this issue very much into account when evaluating alternatives for structuring foreign investments.

Latin Counsel: Argentina is currently undergoing significant economic and legal reforms under the Milei administration. How have these changes, particularly those related to deregulation and the promotion of private investment, impacted the oil, gas, and energy sectors that you advise?

Francisco Macías: These changes are aimed at reducing state intervention in various sectors of the economy, and hydrocarbons and energy are no exception. These changes are excellent news for these sectors, which have received them with great optimism, but there is still a long way to go in terms of implementation.
For the moment, the effect of these changes is being felt more in the hydrocarbons sector than in the electricity sector. This is partly due to the inertia derived from the fact that hydrocarbon exploitation is a state policy in Argentina.
On the one hand, we are seeing very good prices in transactions involving upstream assets, mainly in Vaca Muerta.
On the other hand, high levels of crude oil and natural gas production are being maintained, strengthening the security of supply to the domestic market and improving the terms of the trade balance.
In addition, important private projects in gas and oil transportation infrastructure have been completed, overcoming bottlenecks that limited production growth, domestic supply security, and exports. The availability of international financing for these projects is a very encouraging sign.

Latin Counsel: The Milei administration’s "Basic Law" and its incentives for large investments (RIGI) have been a key part of its agenda. What are the main legal implications of these new frameworks for foreign investors and domestic players in the energy and infrastructure sectors, and what challenges and opportunities do they present?

Francisco Macías: The RIGI offers investors—both local and foreign, willing to develop projects in certain strategic sectors—a series of tax, exchange, and regulatory incentives. The aim is to ensure that projects are not affected by legislative or regulatory changes that negatively alter their economic and financial equation, as has happened in the past. It also provides for the possibility that, subject to proper implementation, disputes arising between the state and private parties may be submitted to international arbitration.
Although the RIGI is a very useful tool that is helping to make some important projects viable and to restore the confidence of markets and investors, it requires much more than a good law. It is essential for the state to return to the path of respecting acquired rights in order to regenerate the conditions that allow these projects to go ahead.

Latin Counsel: When you are not navigating complex legal frameworks, what are some of your personal passions or hobbies that help you disconnect and recharge your batteries?

Francisco Macías: I really enjoy training with my friends, mainly cycling and swimming.

Latin Counsel: The legal landscape is constantly evolving. What advice would you give to young lawyers entering the field today, especially those interested in energy and infrastructure law?

Francisco Macías: I would tell them that in a country like Argentina and in a sector like hydrocarbons, the ability to adapt quickly to change and to face uncertainty with flexibility are essential.
I would also tell them that through their work, they will be contributing to the development of a strategic sector that is fundamental to the country’s economic growth and security.

Latin Counsel: What qualities do you think are most critical for a successful lawyer in the 21st century?

Francisco Macías: Soft skills. In a context where artificial intelligence is transforming the way we work, the ability to relate effectively with colleagues and clients and build lasting and mutually beneficial relationships will be qualities that set them apart in a very favorable way.

Latin Counsel: If you could offer one piece of advice to future generations considering a career in law, what would it be?

Francisco Macías: I would tell them that law provides a very practical perspective on reality and business. And it offers a very versatile education with different career options: from justice, diplomacy, and politics, to professional practice in a law firm, a company, or the government, to teaching and journalism.

Latin Counsel: What do you consider to be the most significant challenges and opportunities facing the legal profession in the next decade?

Francisco Macías: Artificial intelligence is undoubtedly a disruptive factor that is radically changing legal business and professional practice. Those who are best able to adapt will have a significant advantage.

Latin Counsel: As an experienced professional, how do you approach mentoring and what role do you think it plays in developing the next generation of legal talent?

Francisco Macías: Working with young lawyers is a mutually enriching process. Sharing views on legal or business issues with them and being open to considering ideas and proposals serves to improve the product for the client and encourage them to develop and think of innovative solutions.
It is important for young lawyers to have contact with clients as early as possible. To add value, they need to understand the client’s business and needs.

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