As confirmed by official and private sources to AmbitThe measure seeks to give greater certainty to investments in the hydrocarbon sector that can overcome the Covid-19 coronavirus pandemic and at the same time avoid the possibility of having to import crude oil in the medium term.
Likewise, the return of the Creole barrel aims to maintain production at 2019 levels – an ambitious goal, it is estimated at 65% -75% this year – to ensure the supply of crude oil nationwide, and thus minimize the impact on the economies. regional and the workforce associated with the hydrocarbon industry. The oil unions have already accepted a 75% reduction in wages and there have been dozens of suspensions, mainly in the shale. More than 10,000 workers today see their sources of income threatened.
In the Government they remember that they are “Urgent and transitory measures”, that they do not want to “put social peace at risk”, and that the ultimate goal is to sustain the hydrocarbon self-sufficiency, employment and energy security in the country.
The decision was anticipated by the Minister of Productive Development, Matías Kulfas, who this Wednesday afternoon held a virtual meeting with managers of the country’s main oil companies. “The idea is to have a reference price that avoids that the projects that are operating in Argentina, even with a low level of activity, do not end up closing under a negative scenario”explained the minister. In the Government they look to the future. “If we did not do it, the great danger is that when activity returns to normal and prices rise again, we will not have production on our feet and we should import oil, that is why we seek to give certainty forward”added the official.
The international benchmark Brent lost 4% to $ 29.72 a barrel, after rising in the previous six sessions. The West Texas Intermediate in the United States (WTI) yielded 2.3% to $ 23.99 after shooting 20% this Tuesday.
Once the DNU sees the light –Ambit He had access to a first draft – the price of US $ 45 is what must be paid to producers. A clause is expected that enables the Secretary of Energy of Sergio Lanziani to assign purchase quotas for each refinery and to which producer.
How was the negotiation of the Creole barrel of oil
The “Creole” barrel garnered strong support from the governors of the oil provinces, such as Neuquén, Río Negro, Chubut and Santa Cruz, but also in the private and union sectors. Sources with knowledge of the negotiation highlighted the efforts of the non-integrated oil company Vista OIL & Gas, Miguel Galuccio. The “Magician” had already installed a Creole barrel when he was president of YPF, during the management of Cristina Fernández de Kirchner.
Integrated oil companies, such as YPF and Pan American Energy (PAE), will feel the effect of the measure. Also the refiners. The companies will pay the provinces royalties for u $ s45 when your sales are for less than u $ s30. PAE, Transfigura (Puma) and Raizen (Shell), three great players in the field, tried to lessen these differences without success. They wanted to close for u $ s35.
From the state oil company they were understandable with the situation the country is going through due to the pandemic and they assured Ambit that will accompany the Creole barrel at $ 45. “We understand the need and with effort we accompany the entire industry. For us, the Creole barrel issue is a great effort, but we understand the need ”, they highlighted this medium.
YPF’s strong support for national energy policy is the first action of Sergio Affronti at the helm of the company, as a newly appointed new CEO. Simultaneously, the accountant is already working on the refinancing of maturities for US $ 1,880 million and $ 22,609 million in local and international issues within the next 12 months. In the video conference with the oil companies, Affronti was sitting next to Kulfas. “It is an important measure taken by the Government”YPF’s new CEO said.
The support of the flag oil company to the Creole barrel is much more valuable if one takes into account the heavy inheritance of red numbers left by the Macrista management. An accounting document that you accessed Ambit, It conclusively demonstrated the contract between the objectives -promises- raised by the displaced Miguel Gutiérrez and Daniel González, and the reality of the numbers that after four years of management ended up being dire for one of the largest and most emblematic companies in the country.
As this medium could know The Creole barrel will be in force from May 1 to December 31, 2020, with the possibility of revision every three months, in charge of the Hydrocarbons Undersecretariat. If the price of Brent oil exceeds US $ 45 for 10 consecutive days, the price of the Creole barrel is suspended.
A complementary measure will be import ban when there is product availability or effective processing capacity in the local market. The draft of the DNU fixes “Price cap” for gasoline and diesel effective as of March 31 last; establish a system mobile withholding to accompany the movement of market prices; and apply maximum reference prices for the sale of bottled LPG.