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Argentine government takes control of oil and gas industry planning

Saturday, July 28th 2012 - 09:07 UTC
Full article 16 comments
Oil producers will be catalogued in a national registry Oil producers will be catalogued in a national registry

The Argentine government announced the creation of an oil planning commission that will set national energy goals and have the power to review private companies’ investment plans.

Oil producers will be catalogued in a national registry overseen by the new commission, according to a decree published in Argentina’s official Gazette. Companies will have to submit annual investment plans by Sept. 30 and the commission will be able to reject proposals it deems aren’t consistent with the national energy goals that the body sets.

The decree strengthens Argentina’s control over the oil industry after the April nationalization of YPF, Argentina’s largest energy company, on the grounds that it failed to invest enough to increase output. Argentina seized a 51% stake from Spain’s Repsol SA after opposing the company’s payment of dividends.

The new commission will be made up of officials from the planning, energy and internal commerce ministries, the official bulletin shows. It will seek to “increase and maximize investments employed to explore, exploit, refine, transport and sell hydrocarbons with the goal of guaranteeing self-sufficiency and sustainability,” according to the document released by the Argentine government.

The body will have 60 days to review the annual investment plans submitted by energy companies and “verify their consistency and adaptation” with the goals it establishes. It can “request the submission of a new annual investment plan that adjusts to the requirements of the national plan for hydrocarbon investments,” the document shows.

The government is authorized to fine companies that don’t comply with national regulations and cancel their concessions, according to the document.
 

Categories: Energy & Oil, Politics.
Tags: Argentina.

Top Comments

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  • LEPRecon

    Uh oh!

    More interference from the government. And they wonder why international companies are reluctant to invest in Argentina!

    Jul 28th, 2012 - 10:15 am 0
  • Conqueror

    That'll be goodbye to the argie gas and oil industry then. Think back to when they stole the company. It was all going to be so straightforward. How long has it been? Not enough qualified and experienced personnel. Little or no investment. And now government interference. Decisions made by political expediency rather than operational requirements. Disaster cometh. How long before argieland is totally broke? So broke that even malvinistas have to admit it!

    Jul 28th, 2012 - 12:44 pm 0
  • slattzzz

    well thats that buggered then

    Jul 28th, 2012 - 08:37 pm 0
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