Argentine and international crude prices to converge

Argentina’s internal crude prices will probably reach parity with international prices by the end of the year, Minister of Energy and Mining Juan José Aranguren said Thursday.

Speaking at a Council of the Americas event in Buenos Aires, the energy minister addressed several topics including tariffs and subsidies, saying, “We are establishing a path to converge [with] international prices of fuel and crude oil.”

In 2017, producers in Argentina receive USD 55.70 per barrel for Medanito crude and USD 47.20 for the heavier Escalante type.

Minister Aranguren also provided updates on other developments in the domestic industry, saying that progress was being made on the renewable energies front, that combined-cycle and thermal projects would be awarded in September, and that 2018 would see the auction of eight transmission projects spanning 2,825 kilometres.

Argentina will also be moving ahead with plans for three pipeline projects in different areas of the country, with labour terms expected to be defined next week.

Regarding the upstream sector, Minister Aranguren said that in 2018 “we will launch the offshore exploration programme to increase hydrocarbons production.”