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Page added on February 5, 2012
Argentina to demand oil, gas fields run at full output
Argentina will demand that oil companies in the country operate oil and gas fields at full output, state news agency Telam said on Saturday, a day after the government cut $461 million in annual tax breaks for big fuel firms amid wider austerity.
President Cristina Fernandez’ government blames private sector oil companies for the country’s waning crude production.
Latin America’s No. 3 economy is increasingly dependent on energy imports to meet demand for natural gas and oil, which has surged since 2003, rebounding from a deep economic crisis.
“They should reach full output at gas and oil fields,” Telam cited Planning Minister Julio De Vido as saying.
Argentina is preparing for a challenging year as Europe’s debt crisis and the sluggish world economy bite into the finances of commodities-producing countries in South America.
Friday’s reduction in tax breaks affects companies such as Panamerican Energy, owned by BP and local firm Bridas; YPF, the local unit of Spain’s Repsol ; China’s Sinopec; and Brazil’s Petrobras.
Argentina is cutting some popular transportation and energy subsidies in a bid to shore up its financial position. The South American country has been shut out of the international capital markets since its 2001/02 debt default.
2 Comments on "Argentina to demand oil, gas fields run at full output"
BillT on Mon, 6th Feb 2012 1:55 am
Quick! Burn it all up! We want to crash soon! Fools…
Arthur on Mon, 6th Feb 2012 2:49 pm
Maybe somebody can tell miss Fernandez that you can’t further open a tap if it is already 100% open. Won’t be long until the Argentinians will remember the Falklands, since there is some oil waiting for an honoust finder. Parachuting Argentinian troops on the Malvinas during the opening ceremony of the olympics in London would be a fine example of perfect timing.