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Argentina to Demand Oil, Gas Fields Run At Full Output

  • Argentina will demand that oil companies in the country operate oil and gas fields at full output, state news agency Telam said on Saturday, a day after the government cut $461 million in annual tax breaks for big fuel firms amid wider austerity.President Cristina Fernandez' government blames private sector oil companies for the country's waning crude production.
  • Latin America's No. 3 economy is increasingly dependent on energy imports to meet demand for natural gas and oil, which has surged since 2003, rebounding from a deep economic crisis."They should reach full output at gas and oil fields," Telam cited Planning Minister Julio De Vido as saying.Argentina is preparing for a challenging year as Europe's debt crisis and the sluggish world economy bite into the finances of commodities-producing countries in South America.
  • Friday's reduction in tax breaks affects companies such as Panamerican Energy, owned by BP and local firm Bridas; YPF, the local unit of Spain's Repsol ; China's Sinopec; and Brazil's Petrobras.Argentina is cutting some popular transportation and energy subsidies in a bid to shore up its financial position. The South American country has been shut out of the international capital markets since its 2001/02 debt default.

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