Page 13 - LatAmOil Week 24 2021

LatAmOil ARGENTINA LatAmOil

Martinez says work on oil and gas

investment law is nearly complete

ARGENTINA’S government has nearly facilities, develop offshore fields and export oil
wrapped up the process of drawing up new leg- and gas under long-term contracts, he said.
islation to promote investment in the oil and gas “The bill will make it possible for investment
industry, Energy Secretary Dario Martinez said to come to Argentina, and this brings more pro-
earlier this week. duction and more activity,” he said during the
Speaking at a seminar hosted by the Diario seminar.
Rio Negro newspaper, the secretary said he Omar Gutierrez, the governor of Neuquen
expected the bill to be ready for submission to Province, indicated at the same event that he
the National Congress in the near future. The was in favour of the government’s efforts. Gut-
government officials who have been drafting ierrez also urged the Fernandez administration
the proposed law and consulting with industry to submit the draft law to the National Assembly
leaders and political figures on the issue are in as soon as possible so that investors had time to
the final stages of their work, he said. consider whether to commit to unconventional
The bill has been under discussion since oil and gas projects in the Vaca Muerta shale
late 2019, when President Alberto Fernandez’s formation. “The oil promotion law mustn’t take
administration announced that it would take more than 90 days to become official, because
measures to promote investment in the hydro- that is when companies close their budgets for
carbon sector. Martinez acknowledged that the following year,” he said. ™
drawing up the law had been a slow process but
asserted that the lack of speed was justified. The
government has been working to build consen-
sus between Argentina’s various political parties,
companies, labour unions and local adminis-
trations because it wants the investment law to
remain successful over the long run, he said.
He did not say exactly when the legislation
would be submitted to the National Congress.
However, he indicated that Buenos Aires was
eager to move forward, saying: “We want it as
soon as possible.” (President Fernandez declared
last month that he intended to send the bill to
legislators before the end of this year.)
According to Martinez, the investment bill is
designed to offer investors long-term stability in
tax and exchange rates, as well as incentives for
production, exports and investment in capac-
ity. The incentives will be offered to companies
that establish underground natural gas storage Energy Secretary Dario Martinez (Photo: Twitter/@dariomartinezpj)

NEWS IN BRIEF

UPSTREAM and the Production-Sharing Contract for the is US$ 29.4 billion, which will be recovered as
Suplus of the Transfer of Rights for the Búzios Cost Oil by the contractors. Since Petrobras has
Petrobras signs Búzios field, in the Santos Basin pre-salt area. a 90% stake in the consortium of this contract,
the amount referring to the 10% stake of the
The negotiations started right after the bid-
co-participation agreement ding process, held on November 6, 2019, in partners CNOOC and CNODC, in the amount
which Petrobras acquired 90% of the rights to of US$ 2.94 billion, will be received in cash by
Petrobras informs that it signed today with Pré- explore and produce the surplus volume of the Petrobras on the effective date of the Agreement.
sal Petróleo SA (PPSA) and its partners CNODC Transfer of Rights from Búzios field, in partner- With the effective start of the agreement,
Brasil Petróleo e Gás (CNODC) and CNOOC ship with CNODC (5%) and CNOOC (5%). the participation in the Búzios reservoir will be
Petroleum Brasil (CNOOC) the Búzios Co-par- Thus, the value of the total compensation 92.666% for Petrobras and 3.667% for each of the
ticipation Agreement, which will regulate the due to the Transfer of Rights Agreement (100% partners.
coexistence of the Transfer of Rights Agreement Petrobras) for the Production Sharing Contract Petrobras, June 12 2021

Week 24 17•June•2021 www. NEWSBASE .com P13