Argentina Rapidly Changing Oil, Gas Industry Levies to Attract Foreign Investment
From Merco Press
Until now the state kept the difference between the international price for Argentine crude —currently between 80 and 90 dollars per barrel— and the reference price of 42. The reform means that the state will only retain the difference between the market prices and 70, meaning increased revenue for oil companies that export crude.
Energy analysts said the measure, which was published in the government’s Official Gazette, will have the most benefit for Argentina’s Pan American Energy (PAE).
PAE, in which Britain’s BP holds a 60% stake, is Argentina’s biggest oil exporter, shipping 2.3 million cubic metres of crude between January and November 2012. Argentina only exports about 10% of its crude. France’s Total and China’s Sinopec will also benefit from the government’s export duty overhaul.
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