Page Seven Digital
The director of the Millennium Foundation, Henry Oporto, affirmed this Friday that for 15 years the Government has privileged oil income with the accelerated exploitation of the fields discovered in 1990, and thus neglected the exploration of new deposits.
He also questioned the bet that the state oil company YPFB replaces the role of foreign oil companies in the country’s hydrocarbon development, a task that he considers was poorly executed.
“The hydrocarbon policy of the last 15 years is that it has privileged in maximizing oil income with the accelerated exploitation of previously discovered fields, neglecting the exploration of new deposits, and bet that YPFB could replace the role of foreign oil companies. . This has been a serious mistake, the product of a statist and ideologized vision, which has driven away private foreign investment in exploration and exploitation tasks”, he questioned.
You can also read: Investment of oil companies down five years, they suggest tripling it
He argued that given this scenario, a new hydrocarbons law should be approved, which is effective in attracting and mobilizing foreign investment, establishing a tax system for the stages of exploration and exploitation, flexible and progressive based on production levels, restitution of reservations and final sale price.
“This is a necessary condition in order to encourage the interest of oil companies to invest risk capital, with a long-term horizon. On the other hand, the role of YPFB in the production chain and in the administration of contracts must be reconsidered”, he stated.
He recalled that experience shows that the state oil company did not fulfill any of its functions and was only detrimental to the hydrocarbon industry.
