There are several large oil projects (the construction of the Vaca Muerta Sur oil pipeline, the ship project to export gas) that already have the “RIGI” seal, which gives them clear tax rules and access to foreign currencies.
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 Exploration. González was with Rolando Figueroa, the governor of Neuquén, on Thursday. However, the final decision lies with the Minister of Economy Luis Caputo, who gave the green light.
Unconventional oil production is reaching records. But it is in decline in the conventional sector. This is a result of a 17% drop in oil prices and an increase in the cost of conventional drilling compared to “shale” (which is cheaper).
The announcement was celebrated by the industry on Oil Day, organized by the Argentine Institute of Oil and Gas (IAPG) together with other companies in the sector for Oil Day. With the presence of most of the industry leaders (Horacio Marín -YPF-, Juan Martín Bulgheroni -PAE-, Horacio Turri -Pampa-) Gonzáles praised the efforts of the sector.
“The minister instructed us to find it “A way to integrate the entire upstream into the RIGI.”Gonzalez said. “We will start doing this now, in a way that encourages investment and additional production.”
The drop in oil prices results in companies receiving $12 less per barrel.
The national government announced the reduction of withholding taxes on the export of “conventional” oil in Chubut, Santa Cruz and Neuquén.
The benefits of RIGI could also benefit two other major projects: the gas pipeline that will allow the export of LNG by ships – in the PAE project – and the expansion of the Perito Moreno gas pipeline, as González explained.
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