The Government regulated access to foreign currency to expand oil and gas production

Decree 4842022 was published in the Official Gazette
Decree 484/2022 was published in the Official Gazette.

The government regulated the operation of the Foreign Exchange Access Regime for Incremental Oil Production (Radpip) as well as a similar promotion scheme for gas, official sources reported, through decree 484/2022, which was published this Tuesday in the Official Gazette.

Both the oil promotion regime and the one referring to natural gas had been created by decree 277/22which established “a new appropriate regulatory framework so that hydrocarbon producers have rules of access to the necessary foreign currency to promote investment in the sector”, although its regulation was missingwhich was solved with decree 484.

According to article 1 of the new regulations, the beneficiaries of access to foreign currency to increase production may appear together with possible associated third parties that comply with the requirements of the decree, including proving a contractual relationship with the beneficiary “of at least 12 months , with a minimum investment of US$50 million”.

Those who fall under the brand-new foreign exchange availability regime to increase oil and gas production “may request recognition of the corresponding benefits as of the third quarter of 2022, after meeting the requirements and within the terms established by the Ministry of Energy”, adds decree 484 in its article 2.

The oil and natural gas producing companies that access the regimes will have to present information in the form of an affidavit
Oil and natural gas producing companies that access the regimes will have to submit information in the form of a sworn statement.

To comply with this step, “they must request it within the peremptory period of 15 business days and after the end of each quarter”, in a management that will include complementary measures of Energy and the Federal Administration of Public Revenues (AFIP). Once the request is accepted, “Energy will issue a certificate that will be notified by note to the beneficiaries, the AFIP and the Central Bank (BCRA)”.

The oil and natural gas producing companies that access the special foreign currency availability regimes will have to submit information as an affidavitTherefore, “in the event of omission, falsity or inconsistency, the provisions of Article 29 of Decree 277/22 will apply” and, in parallel, “Energy may suspend the benefit or automatically deduct from future benefits the certificates issued with falsified or omitted data”.

In the rest of the 28 articles of Decree 484, the technical parameters are established to define what will be the Base Line corresponding to the Registry of Access to Foreign Currency for Incremental Oil Production, such as the production of crude oil from January to December 2021 that comes from of areas owned by each beneficiary that have been officially recognized by Energy.

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