Resolution No. 419-E/2017
On November 2nd 2017, the Resolution No. 419-E/2017 was published in the Official Gazette, which modifies the Annex of the Resolution 46-E/2017 that created the bases and conditions of the Incentive Program for Investments in the Development of Natural Gas Production of Unconventional Reserves (the “Program”). The purpose of the Program is to accelerate the transition from a pilot stage to a development stage of those concessions granted to exploit hydrocarbons originated in unconventional reserves, as well as to increase the production of those that are in development stage.
The objective of this amendment, implemented by Resolution 419-E/2017 is to increase the incentives by modifying the bases and conditions of the Program. Therefore, the new bases and conditions establishes: (i) a lower limit of the average annual production of natural gas –which is used to evaluate the investment project that applies to the Program and to distinguish the concessions that are in a pilot stage at the moment of application to the Program from those that are in a development stage – and (ii) the Program modifies the estimations related to the calculation of the Effective Price – the monthly price weighed according to the total number of sales of natural gas in Argentina and published by the Secretariat of Hydrocarbon Resources.