The officials pointed out that the measure aims to generate certainty and incentives to encourage investment and increase the production of the sector in Argentina. Specifically, companies will be able to access foreign currency to transfer profits and dividends abroad, repatriate investments and cancel commercial or financial debts (including liabilities with non-resident related companies) for the equivalent of 20% of the increased production of crude oil and 30 % of additional gas injection with respect to the volume obtained by each company last year.
In addition, additional percentages will be obtained for the coverage of the domestic market, the reversal of the technical decline, the incremental production in low-productivity wells, the contracting of local companies for special services, and the investment.
Guzmán affirmed that the initiative “aims to reduce limitations and bottlenecks in the sector, allowing companies to access the necessary foreign currency to guarantee special equipment to obtain incremental production, so that they can have elements that are needed to produce more foreign currency. ”.
Among those who celebrated the measure was the owner of the Techint Group, Paolo Rocca, who said that “the President was very clear in indicating the creation of long-term confidence in order to attract private investments of this type.” “I found it very positive considering the change in circumstance worldwide due to Russia’s invasion of Ukraine,” he said after the announcement.
This global context was pointed out by Alberto Fernández as “a unique opportunity” for the development of the country. In this sense, the president of the Central Bank, who also spoke at the event, considered that Argentina has the possibility of increasing exports and overcoming the external restriction.
In the medium term, the official commitment is to position the country as an exporter of LNG to Europe and other parts of the world, something that will require, in addition to the construction of the Néstor Kirchner gas pipeline, the construction of a liquefaction plant that will also require large investments. With this in mind, the president had as one of his key objectives during his last tour of Germany, France and Spain to guarantee the demand for those eventual shipments of liquefied gas by ship.
“We want to carry out an LNG production plant to be able to export that gas, taking into account the amount of excess gas, and with each leader I spoke to in Europe, they told me ‘I’ll sign up.’ We have a great opportunity in terms of energy as a country”, Fernández said yesterday.
That is why he suggested to the businessmen that they must move forward with the construction of the liquefaction plant “as soon as possible” and assured them that the Government will send a bill to the National Congress to establish how these will be built and how they will work. LNG production plants. Specifically, to guarantee certainty to the sector.
Based on these policies, the Government is enthusiastic about the possibility of increasing oil production by more than 71% and gas production by more than 30% over the next five years. By 2026, it also plans to obtain up to $18 billion in additional exports per year and reduce electricity subsidies by up to 40%.
Source: Ambito
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