The President of Argentina, Mr. Mauricio Macri, recently informed that certain benefits will be implemented for the oil and gas industry. This announcement is aimed at attracting local and foreign investments with an emphasis in the Vaca Muerta formation, ranked as having one of the world's most important non conventional hydrocarbons technically recoverable reserves.
The announcement included:
- An agreement with unions to amend current existing collective bargaining agreements for the sector, including different rules for conventional and non conventional hydrocarbons' activities.
- The elimination of the obligation of repatriation of funds due to oil and gas exports currently regulated by Executive Order 1,722/11.
- The extension of the "Plan Gas" program, which established a differential price in favor of companies that inject natural gas for internal demand.
- The elimination of the export duties applicable to oil and gas exports. This is the only announcement that became effective as from 7 January 2017 since the last extension of the export duties indicated in Law No. 26,732 expired and the government decided not to renew it.