According to Decree No. 929/2013 of July 15th, Argentina will offer oil and gas Companies incentives if they invest at least one billion US dollars or more over a five-year period in exploration.
After five years of the investment plan, companies participating in the program shall be entitled to sell 20 percent of their oil & gas production in international markets without paying export taxes and will be able to keep the resulting export revenue outside of Argentina.
According to the Decree, in the event exports are banned because of shortages in domestic supply, then the companies participating in the program shall be entitled to sell the oil and gas destined for export in the domestic market at international prices, and they will also be granted foreign currency access.
The Decree has outlined the main features of the new promotion of investments regulation, but it requires further regulation of technicalities, which will come during the following weeks, in the form of further Decrees and Resolutions.
Chevron Finally Signed An Agreement With YPF To Invest $124 Billion Dollars In Vaca Muerta Oil And Gas Formation
YPF and Chevron committed to drill 100 wells in an area of 20 square kilometers (5,000 acres), known as Loma La Lata Norte and Loma Campaña in the initial development phase.
Loma La Lata field is now producing more than 10,000 barrels of oil-equivalent per day. A second phase of the development will require the drilling of 1,500 wells.
Local firm Bridas Energy also signed a preliminary deal with YPF to drill in Vaca Muerta, but Chevron is the first company to finalize investment plans.
In case of any local legal challenges, YPF and Chevron have agreed to go to court in the United States rather than in Argentina.
A U.S. Department of Energy report has shown Argentina holds more natural gas trapped in shale rock than all of Europe – a bounty estimated at 774 trillion cubic feet, the bulk of it located in Vaca Muerta.
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