Page 12 - LatAmOil Week 38 2021

LatAmOil ARGENTINA LatAmOil

Argentina sends new oil, gas

investment bill to Parliament

THE government of Argentina has sent a bill maximum boost to oil and gas activity ... For
designed to promote investment in the oil and that, we have decided to give certainty so that
gas industry to the National Congress no one goes forward blindly seeing how things
The bill proposes an incentive scheme that change in the coming months or years.”
would be based on increased approvals for oil The bill was made public at a time of political
and gas exports, according to a Reuters report. uncertainty. Fernandez saw his ruling coalition
It aims to promote regional development and lose its parliamentary majority in mid-term elec-
increase domestic oil and gas production and tions on September 12, and Christina Fernandez
exports, the news agency said. de Kirchner, his vice-president, responded to the
The draft legislation envisages an investment defeat last week by asserting that the president’s
promotion regime that would remain in effect economic policies had alienated voters.
for 20 years. It would also include measures Since then, Fernandez has dismissed several
designed to boost access to foreign exchange members of his cabinet. Energy Minister Dario
markets, which are currently restricted as a Martinez has retained his post, however.
result of capital controls. Fernandez took office in 2019 after defeating
“It is a plan that foresees 20 years of stability then-President Mauricio Macri’s bid for re-elec-
in fiscal matters,” Argentine President Alberto tion. He has followed Macri in declaring his
Fernandez said during a presentation ceremony interest in developing the country’s crude oil and
last week. natural gas resources, including unconventional
“The ambition is for Argentina to produce hydrocarbon reserves in Vaca Muerta, one of the
[oil and gas] in excess and export the surplus to largest shale formations in the world. The for-
bring in dollars ... We have enormous potential mation is around the size of Belgium and con-
and we cannot waste it,” the centre-left president tains around 308 trillion cubic feet (8.722 trillion
added. cubic metres) of shale gas, according to the US
He continued: “We have to give the Energy Information Administration (EIA). ™

Fernandez (L) is currently at odds with Kirchner (R), his vice president (Photo: Argentina Senate)

P12 www. NEWSBASE .com Week 38 23•September•2021