follow us like us subscribe contact us
Loading, please wait

Paraguay: Unexplored and Open for Business

By Editorial Dept | Fri, 03 May 2013 21:12 | 0

This week we find ourselves back in Latin America, but in Paraguay, where an estimated 4 billion barrels of oil in one basin alone could turn the country into a net fuel exporter. But what we really like is the outcome of last week’s presidential elections, which could very likely set up foreign investors to take full advantage of this opportunity.

As we mentioned in last week’s Intel Notes, on 21 April, Horacio Cartes, a member of the Colorado Party, won Paraguay’s presidential elections, and he’s a businessman first and foremost who understands what it means to turn his country into a net fuel exporter. Cartes has no resource nationalism tendencies such as are sweeping across the region, and the general consensus is that he will govern from a pro-investment perspective that will benefit the oil and gas industry.

According to Southern Pulse, Paraguay’s hydrocarbons regulations are already appealing, and Cartes’ ascendancy to the presidency can only render the atmosphere more attractive to foreign investors. Law 779 includes a royalty on production that ranges from 10-15% of per-barrel revenue.  Hydrocarbon licenses are granted and guaranteed by Congress, and tax laws for foreigners include benefits that are conducive to the high-risk nature of exploration and development.

For now, landlocked Paraguay hasn’t made that one big find that will put it on the map, but the potential is there and it’s a particularly…

To read the rest of this article Start a FREE subscription to our premium publication

Oil & Energy Insider - 30 day Free trial

30 day Free trial
A FREE Subscription Includes:
  • Investment advice normally reserved for hedge fund clients.
  • Market & sector research not available anywhere else.
  • Strategic advice from corporate & military intelligence analysts.
  • 9 Weekly Investment / intelligence reports.
  • Full access to all previous reports.
  • 30 days free trial.
Get FREE access to our research for 30 days

An essential resource for all investors in the energy sector whether you're a trader, fund manager or individual investor - this inside look at the energy markets is unlike any other report or service currently available.