Petrol Stop - Argentina to demand oil, gas fields run at full output

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Argentina to demand oil, gas fields run at full output

Saturday, 04 February 2012

05 Feb 2012;timesofindia.indiatimes.com:BUENOS AIRES: 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.