• 5 minutes Mike Shellman's musings on "Cartoon of the Week"
  • 11 minutes Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 2 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 23 hours The Discount Airline Model Is Coming for Europe’s Railways
  • 11 hours Pakistan: "Heart" Of Terrorism and Global Threat
  • 2 days Newspaper Editorials Across U.S. Rebuke Trump For Attacks On Press
  • 3 hours Saudi Fund Wants to Take Tesla Private?
  • 7 hours Starvation, horror in Venezuela
  • 2 days Batteries Could Be a Small Dotcom-Style Bubble
  • 16 hours Venezuela set to raise gasoline prices to international levels.
  • 8 hours Renewable Energy Could "Effectively Be Free" by 2030
  • 10 hours Are Trump's steel tariffs working? Seems they are!
  • 1 day Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 2 days France Will Close All Coal Fired Power Stations By 2021
  • 2 days Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
Alt Text

Deciphering The New Caspian Agreement

The Caspian deal is a…

Alt Text

The Key Oil Price Driver By 2020

Middle distillates such as jet…

Alt Text

What Happens To Syrian Oil Post-Civil War?

After years of conflict in…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

Argentina Makes Good On Debts With These Energy Giants

Oil Rig Workers

Back from the wilds of Indonesia, and the luxury of Seoul. To find that one of the world’s best oil and gas plays just got even better.

The place is the nation of Argentina. Where recent moves by the government to ensure high prices have made the country perhaps the top place globally for E&P activity right now.
And late last week, Argentina’s lawmakers took another big step in attracting energy investment. Paying for past nationalizations in the oil and gas sector. Related: Where To Invest As Oil Turns Around

The government said Friday that it has reached settlements with both Shell and U.S. midstream major Kinder Morgan. Over long-running suits related to expropriations carried out by Argentina’s previous governments.

In Shell’s case, the injustice happened to the company’s now-subsidiary BG Group. Which had filed an arbitration claim against Argentina back in 2003 — claiming that government price controls in the energy sector had reduced the value of BG’s holdings in Argentine natgas distributor MetroGas SA.
Kinder Morgan’s subsidiary El Paso Energy also won a more-recent judgement against Argentina. With a World Bank arbitration council awarding the firm $74 million in damages in 2014 — related to the state expropriation of El Paso’s shareholdings in a number of Argentina energy firms.

Up until now, Argentina’s government had been resisting both of these settlements. But on Friday, officials said they will pay the damages in full — amounting to $217 million in total payouts to the two firms. Related: Fundamentals Starting to Underpin Oil Price Rally

That amount is relatively small. But the move is a highly symbolic gesture that Argentina’s new pro-business government is eager to put aside past issues in the energy sector. And give foreign investors the comfort they need to move forward with new projects in the country.

Combined with world-leading financial incentives, and the highly prospective geology of Argentina’s shale plays, this should help cement the country as one of the top spots for E&P activity. Watch for more deals on projects here.

Here’s to bygones being bygones

By Dave Forest

More Top Reads For Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News