Argentina Reduces Energy Subsidies, Achieves Surplus Amid Calls for Investment Reforms

Argentina has reduced energy subsidies by $2.7 billion in the first seven months of the year. Energy Secretary Eduardo Rodriguez Chirillo announced this in Houston and reported a $2.9 billion energy trade surplus from January to July. Officials are pushing for policy reforms to boost oil and gas investment.

Argentina has achieved a $2.7 billion reduction in energy subsidies within the first seven months of the year, Energy Secretary Eduardo Rodriguez Chirillo announced on Thursday. The move is part of the government's strategy to lower its fiscal deficit.

In a meeting with energy industry executives in Houston, Rodriguez Chirillo highlighted that Argentina reported a $2.9 billion energy trade surplus between January and July. "Our mission in the new model is that the investor can design his own model (...) and knows that he has the right to export," he stated.

Neuquen province Governor Rolando Figueroa, home to the vast Vaca Muerta shale reserves, emphasized the need to eliminate foreign exchange controls to attract more oil and gas investments. "We can multiply by six the (oil and gas) production we can offer to the world," Figueroa said, stressing that clear rules, a new legal framework for the energy sector, and effective resource management are crucial for reaching production targets.

(With inputs from agencies.)