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Argentina calls for investment to regain energy sufficiency

16 Jul 2013

Argentina has called for investors, saying that it would allow companies to export 20% of Oil & Gas tax-free, on the basis that they invest $1billion into the sector over five years.

A decree spelling out the rules in the strictly regulated energy sector was released on the eve on the announcement of a joint venture between YPF and Chevron, to develop part of the rich Vaca Muerta shale formation.

The government has said that the regime calling for investment is part of a strategy to regain energy sufficiency. This is an increasingly urgent goal, as analysts have estimated that spending of $13billion this year is necessary, and as much as $16billion next year, on costly imports to make up for falling domestic production.