“Without a basic law, we have achieved a record production in oil and gas. These rules will consolidate the investments that are currently in development, which will be US$12.5 billion by 2025 and US$14 billion by 2026. If you add the RIGI, in 2025 it will be US$2.5 billion and in 2026 another US$2.5 billion.”the official said Tuesday at an event celebrating Shell’s 110th anniversary.
The secretary explained that they found a “collapsed system” and the decision was made to reconfigure the rate to cover the cost of service and state subsidies to help the macroeconomy. “People had stopped seeing the real price of energy,” he said.
Chirillo pointed out that “In the change of model we are betting on private companies in competitive markets and on investments in infrastructure.”
The impact of RIGI on energy investments
The official stated that “The RIGI is an additional complement for the energy sector and is essential because it provides stability, benefits, legal security and seeks projects that, otherwise, would not be carried out in Argentina today because these conditions do not exist.”
Regarding hydrocarbons, he highlighted the change “in the purpose of the law” and said: “We are now looking to maximise income, which means taking advantage of the window of opportunity that is closing over time.”
“Companies have the right to freely trade abroad, initially through pipelines, then through ships and LNG terminals. It is a right of companies, it is a fundamental reform that seeks to reduce the risk of business so as not to depend on a precarious authorization that can be cut off at any time, this is what will allow for long-term contracts,” he explained.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
