Argentina to Transfer E&P to Seven Provinces

Argentina's federal planning minister Julio de Vido and governors and representatives from seven provinces signed an agreement to transfer hydrocarbons E&P to those provinces, state news agency Telam reported.

The provinces are Chubut, Formosa, Jujuy, La Pampa, Rio Negro, Santa Cruz and Tierra del Fuego.

The agreement, which is in preparation for a modification to the hydrocarbons law, means that "when concessions end on an oil area, the provinces will be able to put them out to concession again to benefit their populations," De Vido said.

The parties also announced the creation of a commission made up of the national government, the energy ministry, the provinces and state oil company Enarsa to ensure an orderly transfer.

Basically, the executive initiative aims to transfer exploration permits and production concessions to the provinces.

The agreement also includes transferring dominion over hydrocarbons transport, but excludes deposits that begin 12 nautical miles (a little more than 22km) offshore, which will remain under national control.

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