Argentina may extend oil investment incentives

|By:, SA News Editor

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.