Dollar-strapped Argentina announces incentives for oil and gas industry

BUENOS AIRES (Reuters) – Argentina introduced late on Friday a bundle of tax and customs advantages for the oil and gasoline trade meant to draw {dollars} to the South American nation, which is battling crippling inflation and a low stage of international foreign money reserves.

    The measures had been introduced on Thursday – and comply with different incentives for the agribusiness and tourism sectors additionally meant to draw {dollars} – and had been formalized on Friday by new Financial system Minister Sergio Massa.

The measures will profit solely firms that make investments a minimal of $50 million.

Argentine President Alberto Fernandez has lengthy sought to draw new investments to the nation’s large Vaca Muerta shale formation, one of many world’s most essential for unconventional hydrocarbons.

Creating Vaca Muerta might make Argentina a internet exporter of oil and gasoline, bringing in badly wanted {dollars} into the economic system.

Below Fernandez, the nation has imposed inflexible foreign money controls which have didn’t abate inflation, anticipated to hit 90% this 12 months.

(Reporting by Marcelo Rochabrun; enhancing by Diane Craft)