Areas to Watch
Since the new Administration took office in Argentina in December 2015, several business opportunities have arisen across multiple sectors. In this website, Marval, O’Farrell & Mairal wants to offer you an analysis of the main investment possibilities within some of its areas of practice: energy and natural resources, agribusiness, infrastructure, and information and communication technologies. We hope this information will help you to make a decision if you are thinking about investing in Argentina.
Currently, power generation in Argentina is expensive and insufficient, for that reason energy is one of the fields where there are more room for improvement and, therefore, for investments. Showing its commitment with renewable energy and being its main goals to lower the cost of electricity and to get cleaner energy sources, the Ministry of Energy and Mining has launched during 2016 the RenovAr Program, a public auction to buy eolic and solar energy. Some of the opportunities for investors in this sector are to leverage Argentina’s excellent wind and solar conditions, to build multipurpose dams to generate hydroelectric power, and to introduce the latest technology developed for power generation.
Regarding oil and gas exploitation, Argentina is the second largest natural gas producer and the fourth largest producer of crude oil in Central and South America. Besides, the country has the second largest amount of shale gas resources and the fourth large shale oil resources worldwide. Lately there have been implemented several incentive programs to promote investments in hydrocarbon exploration and production, such as Gas Plus, Gas Plan I and II, and a promotional regime for new projects. Under this regime, producers that increase their natural gas production are entitled to a compensation, whose amount varies according to the additional volumes they supplied to the domestic market.
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