Martín Guzmán and Alberto Fernández presented the steps. Photo file Juan Manuel Foglia
Oil companies can access dollars and leave them outside Argentina, as announced Tuesday by the Minister of the Economy, Martin Guzmán. Measure will benefit companies managing to increase their production by 20% About 2021, the head of the Economy explained.
The standard, demanded by the sector, simplifies operations of oil companies, according to their executives. As an example, if an oil company produces 150,000 barrels per day during 2021, and this year it will improve its production by 20% (this will be an additional 30,000 barrels), could leave abroad a dollar equivalent to that “extra” oil.
The decree established the creation of a “Foreign Exchange Access Regime for Incremental Oil Production” (RADPID), which This also applies to gas producers.
Argentina recorded oil exports of US $ 5.2 billion in 2021. But this year it could rise to them. There is a price hike of oil, where the country can benefit.
Those who sign up for the regime and prove that they have injected a production volume 20% higher than in 2021, will have the right to access the free exchange market. by its equivalent in “incremental production”, valued at the export price net of duties and corresponding premiums.
Central Bank president Miguel Pesce pointed out that the oil companies they can use the foreign currency they got for debt repayment issued Negotiable Obligations (ON). They can too spin dividends in their parent company. Y send them home after a certain period of time.
dollar debts
YPF got into trouble when the Central Bank did not allow companies to pay their ONs in dollars. This measure, they understand in the sector, this will let their hands be free to cancel those operations. Getting a loan is key for oil companies, which are capital intensive.
Oil companies want those dollars abroad because it will give them facility in contracting services abroad. This is the case of large drilling rigsor services of oil companies, which charge US charges,
In the case of gas makers, they will have this benefit when exceeds 2021 production by 30%.
“From the macro, this will allow us to have higher foreign exchange to maintain economic growth, which requires imports (in dollars). It also requires greater exchange rate stability and reduce energy subsidiesthat will strengthen us financially, “Guzmán said. The government is on the brink of a formal 20% increase in electricity and gas bills.
“This special foreign exchange income regime is for the incremental production of hydrocarbons. It will allow them (companies) to access the necessary foreign exchange to contract special equipment. This access (abroad) to foreign currency is done so that they can access the elements (inputs) needed for generate more money (via export or new production), Guzmán explains.
“The moment in which we live shows us a unique opportunity. Energy can play a transforming role. It’s a combination that generates certainty and incentives, ”Guzmán said.
“The presidents of European countries have told me that this is an important moment for gas, and Argentina may have opportunities for excess gas” (when the gas pipeline is finished which connects Vaca Muerta to Buenos Aires), added President Alberto Fernández.
“It points to solve barriers and bottlenecks of the sector, making it easier for companies to access specialized equipment to obtain incremental production. New foreign exchange regulations are also guaranteed to allow a increasing foreign direct investment in the sectorGuzman said.
Source: Clarin