Argentina issues decree for access to foreign exchange from oil and gas sectors
The Argentine government established by decree access to the dollar for oil and gas production companies. The measure had already been advanced by the new Minister of the Economy, Sergio Massa, when he took office
The measure on regulation of access to foreign currency in the oil and gas sector had been mentioned by the new Argentine Economy Minister Sergio Massa. However, the decree was issued this week, specifying the requirements that companies in both fields must meet to obtain foreign currency.
According to decree 484/2022, “the beneficiaries may, in order to encourage investments to increase the production of the hydrocarbon areas under their ownership, present themselves together with other legal entities with a minimum investment of US$ 50 million”.
The companies that are accepted will enjoy the corresponding benefits from the third quarter of the year. They must submit all collections for these purposes, within the time stipulated for receipt by the Secretary of Energy.
According to the decree, the companies that are accepted to receive the allocation of foreign currency, “must increase their purchases and contracts with national and regional suppliers by December 2024 by 30 % for drilling and completion items, and by 40 % for the items of production and maintenance and works and surface installations on the percentage of composition of the expense of 2021.”
Government representatives have justified the issuance of this decree, taking into account Argentina’s deficit situation in the energy trade balance. On the other hand, they consider that the measure is fundamental for the macroeconomic impulse of the country.
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