Seeking Alpha

Argentina may extend oil investment incentives

  • Argentina is said to be considering extending tax incentives put in place last year to attract investment in the energy industry, as the government begins to discuss a new oil law with provinces.
  • The proposal reportedly would offer energy companies that invest $250M over a five-year period the ability to sell 20% of production in international markets without paying export taxes and the ability to keep some export revenue outside the country; the bill would lower the target for the incentives from $1B.
  • The new law would seek to end political tensions derived from unclear rules and lure more investors to Vaca Muerta, where Chevron (CVX) signed a final joint venture agreement with state-run energy company YPF earlier this year; Exxon Mobil (XOM) also has a strong presence at the giant shale formation.
Comments (3)
  • User 353732
    , contributor
    Comments (4975) | Send Message
     
    Until there is sanctity of contracts and the rule of law neither CVX and XOM will make large investments in Argentina despite the attractive shale resources.
    Argentina is worse than California.
    10 Jun 2014, 01:07 PM Reply Like
  • smurf
    , contributor
    Comments (4443) | Send Message
     
    Incentives. Right. And then down the road, sue the companies on bogus environmental charges.

     

    Or, when everything's up and running, nationalize the whole thing.

     

    Stay out of these banana republics.
    10 Jun 2014, 02:55 PM Reply Like
  • moseharper
    , contributor
    Comments (263) | Send Message
     
    Backwaters should be small potatoes....
    10 Jun 2014, 06:31 PM Reply Like
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