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1/10/2017, 9:01 PM (Source: TeleTrader)
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Argentine shale set for $15 billion investment per year

The government of Mauricio Macri, president of Argentina, reached a deal with labor unions on Tuesday on lower salary quotas as part of a deal with companies which set $5 billion for the development of shale deposits this year. The Vaca Muerta field in the western province of Neuquen is the second-largest in the world of its kind, with 19 concessions granted so far to domestic utility YPF SA and global energy companies including Chevron Corp., Exxon Mobil Corp., BP Plc and Total SA.

Only two sections have seen works initiated, while the remaining 17 are expected to be boosted by the agreement, which introduces subsidies for gas to guarantee that the state will buy it for $0.75 per therm or 100,000 British thermal units. The companies said they intend to lift annual investment in gas and oil to $15 billion within few years. Macri said the cabinet allowed the 15-year-old law on export duties on fossil energy to expire. 

The local government, located in Patagonia, also committed to limit taxes and invest in infrastructure. YPF has the licenses to explore more than half of the surface of the concessions in Vaca Muerta, which is almost as large as Taiwan.

Breaking the News / IT