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Argentina Upstream Fiscal and Regulatory Report - Reduced Royalty Offered for First Offshore Round

Argentina Upstream Fiscal and Regulatory Report - Reduced Royalty Offered for First Offshore Round

Summary

The changes to the fiscal regime and the reforms implemented under the administration of President Macri have improved the investment climate for the upstream hydrocarbon sector. However, despite having suspended controls on domestic crude oil prices in September 2018, the government has been forced to reintroduce an export tax as a result of Argentina’s current currency crisis. At the same time, the government wants to go ahead with increasing gas prices for final consumers to improve the attractiveness of the hydrocarbons sector for prospective investors, but this may face opposition from Parliament. On top of this, in November 2018, Argentina opened Argentina Offshore Round 1 through which 36 blocks are on offer across three different basins.

“Argentina Upstream Fiscal and Regulatory Report ─ Reduced Royalty Offered for First Offshore Round”, presents the essential information relating to the terms which govern investment into Argentina’s upstream oil and gas sector. The report sets out in detail the contractual framework under which firms must operate in the industry, clearly defining factors affecting profitability and quantifying the state’s take from hydrocarbon production. Considering political, economic and industry specific variables, the report also analyses future trends for Argentina’s upstream oil and gas investment climate.

Scope

  • Overview of current fiscal terms governing upstream oil and gas operations in Argentina
  • Assessment of the current fiscal regime’s state take and attractiveness to investors
  • Charts illustrating the regime structure, and legal and institutional frameworks
  • Detail on legal framework and governing bodies administering the industry
  • Levels of upfront payments and taxation applicable to oil and gas production
  • Information on application of fiscal and regulatory terms to specific licenses
  • Outlook on future of fiscal and regulatory terms in Argentina.
Reasons to buy
  • Understand the complex regulations and contractual requirements applicable to Argentina’s upstream oil and gas sector
  • Evaluate factors determining profit levels in the industry
  • Identify potential regulatory issues facing investors in the country’s upstream sector
  • Utilize considered insight on future trends to inform decision-making.


  • Regime Overview
    • Table Regime Overview
    • Table Figure 1: Regime Flow Chart
  • State Take Assessment
    • Table Figure 2: Argentina, Indicative NPV10/boe, IRR and State Take Comparison, Regional
  • Key Fiscal Terms
    • Royalties, Bonuses, and Fees
      • Bonuses
      • Royalty
        • Table Argentina, Royalty Framework, Argentina Offshore Round 1
      • Rental Fees
        • Table Argentina, Rental Fees, From October 31, 2014 Onward
        • Table Argentina, Rental Fees, From 2007 to October 31, 2014
        • Table Argentina, Rental Fees, Prior to 2007
    • Extraordinary Income Levy (Where Directly Negotiated)
      • Neuquén Province
        • Table Argentina, Neuquén Province, Extraordinary Income Levy Rates (%), 2008 YPF Extension
      • Mendoza Province
        • Table Argentina, Mendoza Province, Extraordinary Income Levy Rates (%), 2010 Law
        • Table Argentina, Mendoza Province, Chañares Herrados Concession, Extraordinary Income Levy Rates (%), 2011
      • Santa Cruz Province
      • Salta Province
        • Table Argentina, Salta Province, Extraordinary Income Levy Rates (%), 2012 YPF Extension
    • Export Duty
      • 2018 Export Tax
      • Previous Export Duties
        • Table Argentina, Additional Export Duty Rates, August 2004
        • Table Argentina, Oil Export Duty Rates Below US$80/bbl, From October 22, 2014 to December 31, 2014
    • Federal Direct Taxation
      • Corporate Income Tax (CIT)
      • Deductions and Depreciation
      • Withholding Tax
      • Capital Gains Tax
    • Provincial Taxation
      • Turnover Tax
      • Stamp Duty
      • Property Tax
    • Indirect Taxation
      • Value Added Tax
      • Customs Duties
      • Corporate Social Responsibility Payments
    • Incentives
      • Gas Plan Incentives (Gas Plan I & II Ended, Gas Plan III Active)
        • Table Argentina, Gas Plan II - Subsidized Prices
        • Table Argentina, Gas Plan - Subsidized Prices, Resolution No. 46-E/2017
      • Stimulus Program for the Export of Escalante Crude Oil Surplus (Ended)
      • Investment Promotion Scheme for Hydrocarbon Production (Ended)
      • Promotional Scheme for Hydrocarbon Exploration and Production (Ended)
      • Oil Plus (Repealed on July 13, 2015)
        • Table Argentina, `Oil Plus' Tax Credit for Production Rates
        • Table Argentina, `Oil Plus' Tax Credit for Reserves Rates
      • Gas Plus (Not Available Any Longer from 2016)
      • Stimulus Program for Crude Oil Production (Ended)
      • Special Regime for Tierra del Fuego, Antarctica and South Atlantic Islands (Ended)
  • Regulation and Licensing
    • Legal Framework
      • Table Figure 3: Argentina, Legal Framework
      • Governing Laws
      • Contract Type
      • Title to Hydrocarbons
    • Institutional Framework
      • Table Figure 4: Argentina, Institutional Framework
      • Licensing Authority
      • Regulatory Agency
        • Table Argentina, Provincial Regulatory Agencies
      • National Oil Company
        • Table Argentina, Provincial Oil Companies
    • Licensing Process
      • Argentina Offshore Round 1 Bid Criteria
        • Table Argentina, Argentina Offshore Round 1, Working Units Tables (Value of the WU = US$5,000)
      • Argentina Offshore Round 1: Bidders Qualification
        • Table Argentina, Argentina Offshore Round 1, Financial Requirements
        • Table Argentina, Argentina Offshore Round 1, Technical Requirements
      • Argentina Offshore Round 1: External Guarantee
      • Onshore Acreage
    • License Terms
      • Duration and Relinquishments
        • Table Argentina, Argentina Offshore Round 1, License Duration
      • Area
      • Work Obligation
      • Domestic Market Obligation (DMO)
      • Transfer of Interest
    • Local Content
    • Profit Repatriation
  • Outlook
  • References
    • Table References
    • Contact Us
    • Disclaimer

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