The Nation’s Minister of Energy and Mines Coordination, Daniel Gonzálezannounced that the government is considering expanding the incentive system for large investments (RIGI) for oil projects Extraction. The aim of the measure is: a a new boost for activity at a time of global volatility Price cuts threaten operators’ reinvestment margins.
It applies to the entire upstream segment: conventional, unconventional and offshore. He shared the news at the lunch organized by the Argentine Institute of Oil and Gas (IAPG) for him Oil daytogether with other companies in the industry. The announcement opened a Window of opportunity for dollar income aimed at developing new initiatives and also enabling the expansion of exports of this energy product, which is important for the balance of trade.
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During his speech, González revealed a key policy that had been disparaged by the economy minister. Luis Caputoafter a recent visit to Vaca Muerta. “The minister instructed us to find it a way to integrate the entire upstream into the RIGI“, the official confirmed to the businessmen.
González emphasized the immediacy of management: “We will start with that now.” Encourage investment and additional production; “It’s an extremely important paradigm shift.”
The fall in oil prices accelerated the measure
The incentive comes in a complex scenario for the industry. The secretary admitted this “Oil fell 17% globally” and since it is linked to international values, the effects are also noticeable in the liquidity of companies.
The China price is already setting the conditions for the industry and forcing SMEs to undergo a traumatic transition
“It’s very tough in the conventional sector, it’s a challenge to livelihoods.”and in the unconventional they persist $12 less per barrel to be reinvested“he explained. Nevertheless, he emphasized that under YPF’s leadership, the industry has proven to be “resilient” and achieved a “historic production record”.
Finally, the official confirmed Casa Rosada’s commitment to reduce the tax burden in order to maintain activity in mature catchment areas. He remembered this a month ago, along with Chubut, Santa Cruz and Neuquén announced their intention to eliminate withholding taxes to conventional oil exports, “understanding that the economic equation becomes extremely difficult with these prices.”
AM/DCQ
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