×
×
Policy & Regulation

Argentina keeps bulk of subsidies for unconventional gas

Companies have warned the Argentine government that planned revisions to subsidies will lead to losses Companies have warned the Argentine government that planned revisions to subsidies will lead to losses.
By Elena Mataro 8 February 2019 Americas / Policy & Regulation 0 33924
A YPF rig in the Vaca Muerta shale play. (YPF)

The Argentine government’s austerity measures, compounded by a long electoral cycle at both regional and central levels, could weigh on investment in gas-producing assets in the Vaca Muerta shale play. Buenos Aires needs to treat policy changes carefully so as not to alienate investment while keeping fiscal discipline.

Argentina’s government is immersed in a cost-cutting exercise following fiscal commitments it made when it agreed to a $50 billion loan from the International Monetary Fund last June – which was raised to $57 billion last September. Gustavo...