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Argentina attracts oil and gas investors with new legislation

11th June 2014

Argentina’s government is in discussion with provincial legislators keep tax incentives for firms wanting to invest in the nation’s oil and gas sector

Argentina attracts oil and gas investors with new legislation
Governors of 10 provinces with oil and natural gas reserves agreed to analyse the draft bill presented by economy minister Axel Kicillof and legal secretary Carlos Zannini

The proposal will allow companies that invest over USD 250m within a five-year period the option to sell 20 per cent of its output to the foreign market without incurring export tax and the ability to deposit a portion of revenue outside the country, according to officials briefed by president Kirchner yesterday.

The incentives will be included in a redraft of Argentinia’s 1967 oil bill and will also offer oil companies 35-year licenses to exploit the world’s second-biggest shale gas reserves and fourth-biggest shale oil reserves.

Governors of 10 provinces with oil and natural gas reserves agreed to analyse the draft bill presented by economy minister Axel Kicillof and legal secretary Carlos Zannini, according to cabinet chief Jorge Capitanich.

“Argentina needs to boost investments in the oil sector and must have an updated law with unified taxes, royalties and environmental standards,” said Capitanich. “The bill will surely be sent to the Senate soon for discussion.”

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