BUENOS AIRES, July 15 Argentina will allow oil
companies to export tax free up to 20 percent of the crude and
natural gas they produce in the country, the government said on
Monday in a bid to attract investment in Argentina's vast Vaca
Muerta shale oil field.
Export revenue of companies that invest at least $1 billion
over five years will also be exempt from the foreign exchange
controls that have been imposed by the government, according to
an announcement in the government's official daily gazette.
Those controls along with other government regulation of
Latin America's third-biggest economy have scared foreign
investors, particularly after President Cristina Fernandez
ordered the seizure of the country's main oil company YPF
from Spain's Repsol in 2012.
Companies that explore Vaca Muerta and export from the field
would be allowed to keep their earnings in foreign exchange
outside the South American country, a benefit denied to other
companies that are required to repatriate their earnings.
The relaxation in regulations comes as the government is
soon expected to sign a $1.5 billion Vaca Muerta exploration
deal with U.S. oil company Chevron.
Oil companies that benefit from the new regulations will be
allowed to renew their concessions for a 25-year period, with a
possible 10-year renovation after that.