Argentina to create state energy company

Argentina to create state energy company, raise oil export tax

Buenos Aires (Platts)--12May2004


The Argentine government late Tuesday said it would create a state energy
company to develop fresh hydrocarbon reserves, expand gas and power production
and expand transport capacity with the aim of overcoming the country's severe
energy shortage. "A main emphasis will be on exploring and developing offshore
areas, which hold the future hydrocarbon resources for Argentina," Planning
Minister Julio De Vido said. "This will enable the country to meet oil and gas
demand." The new company, called Energia Argentina, or Enarsa, is to be 53%
owned by the state, 12% by Argentina's provinces and 35% by private investors,
De Vido added. Also unveiled were plans to raise export taxes on oil and
refined products to pay for infrastructure projects. These would include the
completion of the huge Yacyreta hydropower plant and the Atucha II nuclear
power plant and the construction of pipelines. The export tax on crude would
be raised to 25% from 20%; on gasoline to 5% from 0%; and for butane, propane
and liquefied petroleum gas to 20% from 5%.

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