Policy & Regulation

Argentina’s rewards scheme – blessing or curse?

The world’s most generous incentive scheme for gas production has somehow run into trouble The world’s most generous incentive scheme for gas production has somehow run into trouble.
By The Wildcat 21 November 2017 0 28471
A YPF drilling rig in the Vaca Muerta shale. YPF drilling in Vaca Muerta, Neuquén province. (YPF)

The era of Argentine largesse is nearly over, with fewer than 40 days remaining of an incentive scheme that allowed producers to pocket a handsome $7.50/MMBtu for ‘new’ gas from existing concessions. It is still unclear what rewards will be available in 2018, but producers are bracing for a less bounteous Buenos Aires. 

Argentina’s government has learned very little from its generosity, apart from the certainty that no good deed goes unpunished. The ‘Plan Gas’ incentives have – arguably – failed, because they have not boosted...