The constitutional reform was followed by a law (“Ley Corta”, /07) whereby provincial authority was extended to include the. EL DECRETO PE Nº , REGLAMENTACION DE LA LEY avasalla a la Provincias ya que la ley el Congreso transfirió funciones a las. Known as the Short Law, Law 26, effected the transfer. 22 J. Lapeña, ‘El Decreto PE No , Reglamentación de la Ley ‘ (undated) Revista del.
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New hydrocarbons law in Argentina
A new Hydrocarbons Law currently in the works seeks to further tip the balance between the two levels of government in favour of the federal government and a more centralised modality of policy-making.
EL DECRETO PE Nº , REGLAMENTACION DE LA LEY
Royalties, taxes and permitting authority are at stake. The reform of the Constitution of recognised the property of subsoil hydrocarbon resources as belonging leey the provinces where they are located Art.
These legal changes, however, did not cede legal jurisdiction to the provinces, which remains in the hands of the nation.
Provincial governments are still subject to the relevant laws and international treaties passed by the national congress. One of the consequences of the decentralisation of energy regulation has been the creation of state-owned enterprises at the provincial level. Other provinces have followed suit: Under the new hydrocarbons law proposed by President Cristina Fernandez, the provincial oil and gas SOEs would no longer enjoy this gate-keeping privilege.
Overall, the new law seeks to replace the collage of provincial systems with a nation-wide arrangement that would prove attractive 26917 investors and yield more control and revenue to the national government. The national government is also seeking to expand the role of YPF as an instrument of national energy policy.
The expropriation of Repsol’s share of YPF not only enlarged the state’s share of the company, but also changed the relationship between the provincial and national governments on energy matters. No money has yet exchanged hands, either in payment for the shares to the national government or in dividends to the provinces, but the partnership has effectively sealed the fates of the provincial and national governments on future oil deals. While the new legislative framework seeks to create more predictable conditions to attract foreign investment, many key issues will remain unresolved, including domestic prices, export taxes, and repatriation of profits.
Similar conditions are expected to be discussed for the development of all non-conventional deposits under the new Hydrocarbons Law.
Written by Sylvia Gaylord. Edited by Callum O’Reilly. Read the article online at: This content is available to members only. Please sign in or become a member for free. State-owned enterprises One of the consequences of the decentralisation of energy regulation has been the creation of state-owned enterprises at the provincial level.
Key issues unresolved While the new legislative framework seeks to create more predictable conditions to attract foreign investment, many key issues will remain unresolved, including domestic prices, export taxes, and repatriation of profits.