MercoPress. South Atlantic News Agency

Neuquen legislature approves YPF/Chevron deal to exploit Vaca Muerta shale reserves

A full day of clashes outside the legislature to protest the bill

The Argentine Patagonian province of Neuquén legislature approved by a comfortable majority the agreement struck between YPF and Chevron to exploit the Vaca Muerta shale gas reserves, after a day disrupted by fierce protests outside the provincial parliament.

Opponents of the proposed link between the government’s majority owned petroleum company and US-based multinational Chevron clashed with police throughout the duration of Wednesday's vote.

But the initiative was eventually approved in general with 25 lawmakers in favour, two abstentions and eight absentees.

Legislators representing the Neuqinos Union, the Workers' Left Front and Free People of the South walked out on the session to show their opposition, but positive votes from the Victory Front, Popular Neuquino Movement and other government allies were sufficient for the bill to pass.

The debate article by article must continue on Thursday before the draft becomes into (provincial) law.

It is estimated that 5.000 people including federal lawmakers turned out to protest some alleged ‘secret’ clauses of the YPF-Chevron agreement plus indigenous Mapuches who fear advances over their lands with no compensation or ignoring sacred sites.

The Neuquen legislature building was surrounded by railings and riot police which at moments had to appeal to tear-gas and rubber bullets.

Argentina because of erred energy policies during a decade has become a net importer of oil and refined products to the tune of 6 to 7 billion dollars a year, which added to the surplus at the beginning of the decade means a negative impact of 10 to 12 billion dollars annually.

The government of President Cristina Fernandez is desperate to overcome the ‘energy deficit’ which is conditioning the country’s finances and the ‘Kirchnerite inclusive development model’.