Argentine province of Salta joins the pack and revokes YPF oil concessions

Monday, March 26th 2012 - 08:18 UTC

Full article 9 comments

As was anticipated yet another Argentine province, Salta, announced Sunday its decision to revoke a concession from Spanish held oil company YPF. The governor from the north-west province of Salta, Juan Manuel Uturbey, and a close ally of President Cristina Fernandez, announced his decision to revoke oil company YPF concession of the Tartagal Oeste area and his intention to include it in a list of areas that will be put out to tender. Read full article

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Idlehands
What companies will be interested? Those able to extract oil are finite - as are their resources - so they will operate where they receive the highest return on capital and where they suffer the least headaches. Would you put Argentina at the top of your list of places to invest?
Mar 26th, 2012 - 08:37 am - Link - Report abuse 0
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GreekYoghurt
PESTLE Analysis
--------------------
Political Risk | -------------------------------------------------------*
Economic Risk | -------------------------------------------------------*
Social Risk | ------*
Technological Risk | --------------------------------*
Legal Risk | -------------------------------------------------------*

Hmm, investment in Argentinian oil fields.... tempting but no.
Environmental Risk |
Mar 26th, 2012 - 08:51 am - Link - Report abuse 0
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briton
just transfer to another country.
and send argentina back to the stone age .
Mar 26th, 2012 - 11:09 am - Link - Report abuse 0
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GreekYoghurt
@3 It does make you wonder who in the world will take up these concessions? A bevvy of very small underfunded operators I'm guessing.
Mar 26th, 2012 - 02:26 pm - Link - Report abuse 0
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ElaineB
The provinces rely completely on money being sent from central government to pay public employees. Some poorer provinces - like Salta - have huge numbers of public employees in order to deal with unemployment and grinding poverty. (Some of these 'employees' do not work but turn up one a month for a pay cheque). So, you can undertsand that CFKC has them by the balls. If they do not support her policies, they get no money.
Mar 26th, 2012 - 03:24 pm - Link - Report abuse 0
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briton
But if they do support her policy, they will all lose out,
A case of, dammed if you do-dammed if you don’t,
Oh to be an argentine .
Mar 26th, 2012 - 05:25 pm - Link - Report abuse 0
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GreekYoghurt
The money well is running dry, once the foreign reserves are used up paying for the winter fuel and paying these folk for doing not-services, then what next? I cannot see what is there next source of income.
Mar 26th, 2012 - 06:54 pm - Link - Report abuse 0
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jerry
Actually, in this ONE case, I might agree with dropping these concessions. If the oil companies bid to get the concessation, then they should be under obligation to do some work, not just hold onto them and do nothing.
Mar 27th, 2012 - 05:32 am - Link - Report abuse 0
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GreekYoghurt
@8 If they're forced to sell oil at $42 per bbl then you really expect them to develop the fields in a hurry or you expect them to develop the concessions where they get $100+ per bbl?

Do you know how businesses work?
Mar 27th, 2012 - 10:57 am - Link - Report abuse 0
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