President Alberto Fernández will present this Wednesday a project of law for the promotion of hydrocarbon activities. Surrounded by governors, businessmen from the sector and unions, Fernández will announce the sending to Congress of the regulation to stimulate oil and gas production.
In the Government they clarify that it is not “a new hydrocarbon law”, but rather an investment promotion project. To make it, Companies will be promised tax stability for 20 years. With this they seek that companies know that they have a long term of rules that will not be changed.
The law will also contemplate the possibility of that companies can have dollars without bringing them into the country. Funds generated through exports will be allowed to transfer to their headquarters.
Fernández will be accompanied by the Secretary of Energy, Darío Martínez, and Pablo González, president of YPF. Ariel Kogan, a Martinez trusted official, was one of those who worked the hardest to achieve the new project.
With the management of rates in the hands of Federico Basualdo (Undersecretary of Electric Energy) and Federico Bernal, controller of the Enargas, the Ministry of Energy was cut back to deal with oil and gas production. The subsidies are estimated by the Minister of Economy, Martín Guzmán, but the government’s political wing is modifying them at will.
Martínez was in the oil provinces explaining the project with local governors and leaders. The official stressed that there are no modifications to a previous hydrocarbon law, from 2014. “There is only a small modification to the hydrocarbon law with the creation of underground gas storage because that figure did not exist. The rest is clearly a promotional regime. with tax benefits for those who want to invest more“he added.
One of the main aspects is the allocation of Exportable Volume Benefited (VEB). Companies will be able to access this “quota” once they demonstrate that they have supplied the local market or that no company wants to buy that production from them within the country.
Once the VEB has been obtained, companies will be able to export and dispose of half of what they obtained at your own discretion. Instead, the other half must be entered by the country. If they export outside the VEB, they will have to settle their exports like any other item, in the official Central Bank dollar.
“There is a chapter for special projects, which must be accompanied with the approval of the provinces. The province that is going to give its opinion is the one where the project is being carried out, in addition, it continues to be the one that will continue to give the area permit, the one that provides the concession, “explained Martínez.
Neuquén, Chubut and Santa Cruz are the main oil provinces. As licensors, They are the ones that collect the royalties when companies produce oil and gas in their fields.