Argentina will allocate $ 6 billion in the development of oil production and exports
February 13, 2015
Argentine authorities decided to allocate subsidies on production and export of oil in the amount of $ 6 billion. Funding will be made within the incentive program, which is designed to prevent falling prey to the sharp decline in world oil prices. Such information agency reported Argus.
The Cabinet of Ministers announced that it would pay an additional $ 3 billion to companies that maintain production of hydrocarbon resources at the level of the last months of last year, or increase them. Exporters of "black gold" will receive an additional $ 2 billion for the oil sold abroad. Moreover, this amount will increase to $ 3 billion for companies that will be able to increase oil exports compared to 2014 year. It is planned that exporting companies will be eligible to receive both grants.
Recall that the decision to encourage the adoption of more than a month after the leadership of Argentina reduced the highly regulated domestic price of oil at $ 7 per barrel. This was done then to soften the 5% drop in retail fuel prices. Before reducing the brand manufacturers Medanito received from local recyclers around 83 dollars per barrel, manufacturers Escalante - about $ 67 per barrel.
Stimulate oil production, will coincide with the efforts of the Argentine authorities to attract foreign companies to the Argentine shale. Although before the fall of oil prices foreigners very cautious approach to investing in Argentina because of government interference in the activities of the oil and gas sector, high costs and the uncertainty associated with the position of Argentina in the international credit markets. Argentina is still isolated from the global capital market.
February 13, 2015
oil-gas-energy.com.ua