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Cabrio1on Feb 18, 2013 7:59am
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Post# 21004871
Argentina presents plan to increase wellhead price
Argentina presents plan to increase wellhead price https://www.bnamericas.com/news/oilandgas/argentina-presents-plan-to-increase-wellhead-price-for-private-producers/341010150
Gas producers have until June 30 to present plans to increase overall gas production in order to qualify for a program that allows for wellhead prices of up to US$7.5/MBTU, according to a report published in Argentina's official gazette.
The initiative, along with an agreement NOC YPF (NYSE: YPF) signed late last year, aims to reverse declining domestic natural gas production.
Plans must be submitted to a new energy planning commission established last year and presided over by deputy economy minister Axel Kicillof, along with trade minister Guillermo Moreno and energy minister Daniel Cameron.
Private firms that qualify for the higher prices will be penalized if they fail to meet production and investment goals.