ANNOUNCEMENT 15 Jul 2015In July 2015, the government of Argentina announced a general change in export conditions.
NUMBER OF INTERVENTIONS
Decree N? 929/2013 (in Spanish) http://www.infoleg.gob.ar/infolegInternet/verNorma.do?id=217314
On 15 July 2013, the Argentine Executive Power via Decree N° 929/2013 established a new system to promote investments in the oil and gas industry. According to this Decree, entities that are eligible to benefit from this new investment promotion system are: holders of hydrocarbon exploration permissions and/or holders of hydrocarbon exploitation concessions and capable of presenting a project of no less than USD 1,000,000,000 for the initial five years of the project.
Consequently, according to the novel system introduced by Decree N° 929/2013, eligible entities, starting from the fifth year of the existence of the project, will be given the ability to export 20% of the hydrocarbon production without paying export duties. Furthermore, exporters will benefit from the possibility of freely disposing of 100% of the foreign currency obtained from such exports.
Furthermore, Decree N° 929/2013 states that in those scenarios in which national demand cannot be met by the national hydrocarbon production, entities will not be allowed to export 20% of their hydrocarbon production. However, those entities will be allowed to charge the export price on the domestic sales of the referred 20% hydrocarbon production. This being in addition, to the entities having the right to purchase foreign currency in the official exchange market for up to 100% of the price obtained.