Vaca Muerta Strategic Investment
Key Dynamics of Argentina's Oil & Gas Industry
Positive changes in regulation support sector dynamics.
Starting in 2012, the government started to implement changes to foster investments in the Oil & Gas sector, including introduction of a gas
price subsidy scheme to gradually close between domestic market price and import parity, and enactment of amended federal
hydrocarbons law to adapt regulatory framework to unconventionals and off-shore exploration and development
Since December 2015, with the current administration in office, the government has taken decisive steps to fully normalize the domestic Oil
& Gas market and attract investment, including liberalization of domestic fuel pricing, elimination of export duties and export quotas, and
normalization of tariffs for transport and distribution of gas and electricity
Oil Prices
Domestic Crude Prices vs. Brent (US$/bbl)
Argentina Oil and Gas Pricing Dynamics
Gas Prices
(US$/mmbtu)
18
130
16
16.7
15.7
14.6
110
Domestic
14
argentine crude
12.6
currently
12
trading at Brent
11.0
90
levels
10
70
8
7.5
70
8.0
6.5
CO
6
50
4
4.8
5.0
2
1.9
2.1
2.2
2.2
2.2
2.4
2.5
30
0
2009 2010
2011
2012 2013 2014
2015
2016 2017
2009
2010
2011
2012
2013
2014
2015
2016
2017
Brent
Medanito
Escalante
Market prices (wellhead)
Subsidy Plan Gas (wellhead)
Source: Ministerio de Energía y Minería (Presidencia de la Nación).
.....
LNG CIF
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