Milei takes further steps to deregulate oil and gas exports in Argentina

The new Argentine government under Javier Milei published a comprehensive decree on December 21 to deregulate the country’s economy. Among various measures, the decree opens the door for the liberalization of oil and natural gas exports from Vaca Muerta.

The Foundations for the Reconstruction of the Argentine Economy, outlined in Decree 70/2023, stipulate that the National Executive Power “cannot establish prohibitions or restrictions on exports or imports for economic reasons.”

According to the new decree, restrictions can only be imposed by law.

Economic reasons for restrictions include promoting or protecting local productive activities, stabilizing domestic prices, or maintaining a supply volume adequate for domestic needs.

The liberalization of exports was a campaign promise and marks a shift from the previous government of Alberto Fernández, which operated with export quotas.

Energy Secretary Eduardo Rodríguez Chirillo, who advised Milei on energy issues during the elections, stated during the campaign that one of the new government’s plans was to review barriers to oil and gas exports.

The so-called “retenciones,” taxes on commodities, will initially be increased by the Milei government from 8% to 15% for oil.

Consolidating Argentina’s position as a gas exporter is strategic for the country’s macroeconomics, representing an influx of foreign currency that could contribute to Argentina’s financial balance.

In Brazil, industry insiders are hopeful for a potential resurgence of energy integration between the two largest economies in South America. They see Argentina and the development of unconventional reserves in Vaca Muerta as a source of competitively priced natural gas imports.

Source: EP BR

Click here to views the original text: https://epbr.com.br/milei-avanca-na-liberacao-das-exportacoes-de-petroleo-e-gas-na-argentina/

Sharing is caring!