News from Argentina – April 2022

Argentina has extended a concession held by energy firms Total Austral, Wintershall Dea Argentina and Pan American Sur for 10 more years until 2041

Argentina has extended a concession held by energy firms Total Austral, Wintershall Dea Argentina and Pan American Sur for 10 more years until 2041, and approved an investment plan for US$700 million, according to a government decree published on Tuesday. The extension for exploring conventional oil and gas in the 1,900 square kilometers (733.59 square miles) offshore area comes as Argentina looks to bolster domestic energy supply and shed a heavily reliance on imports as global prices rise.

Aluminum plant to expand wind farm in Argentine Patagonia

The traditional Argentine aluminum manufacturer Aluar has announced plans to invest US$ 130 million to expand its wind farm near Puerto Madryn, in the Argentine Patagonia province of Chubut. The new equipment is expected to be fully operational by December 2023. The new stage of the wind farm will have 18 wind turbines of 4.5 MW nominal power. This fourth stage will add 81 MW of power to the current renewable energy production of the Wind Farm that supplies the Primary Aluminum Production Plant.

Energy production agreement between Chile and Argentina

Chile and Argentina signed an agreement for new collaboration in energy, including increasing Argentine exports of LNG and oil to Chile, and the reopening of the Neuquén-Biobío pipeline. Sending Vaca Muerta gas over the Andes is already helping Argentina with hard currency needs, while Chile benefits from sourcing cheaper-than-LNG fuel. The deal also opens the possibility of Argentine access to Chile’s Pacific ports, thereby facilitating the export of oil and gas to the Asian market.

Wartime sunflower boom beckons for farmers on Argentina’s pampas plains

Ever since Russia invaded Ukraine, farmers in one small town after another on Argentina’s Pampas plains have been recalibrating plans to account for rocketing prices of both crops and inputs like fertilizers. Six weeks later, a trend is emerging: The South American nation is poised for a sunflower boom. Russia and Ukraine normally account for nearly 80 percent of sun oil exports. With shipments plunging amid the upheaval of war, a door has swung open for Argentina, the biggest soy oil supplier, to rekindle its sunflower industry.

Argentina's Defense Minister is to head the country's delegation at the Argentine ward of the International Air and Space Fair in Santiago, Chile

Argentina’s Defense Minister is to head the country’s delegation at the Argentine ward of the International Air and Space Fair (FIDAE) in Santiago, Chile, where he will try to attract potential customers for the IA-63 jet trainer Pampa. Argentina is represented at FIDAE by FAdeA and Invap, as private companies of the Argentine Chamber of Aeronautics and Space. The biannual international exhibition has more than 400 exhibitors and more than 200 delegations from 50 countries, which makes it a unique opportunity to display the country’s aerospace products and services.

Mining in Salta achieved exports of US$ 26.1 billion in January 2022

Argentina’s national oil company YPF (YPFD.BA) boosted supplies of gasoil last month and during the first few days of April to their highest level in a decade, the firm said on Tuesday, in a bid to meet spiking demand for motor fuels. Gasoil, a type of diesel, is mostly used in Argentina as a fuel for trucks, especially in the country’s key agriculture sector. Farmers warned last week about shortages. “YPF is making its maximum production, import and logistics efforts to sustain growing demand for diesel in a context of international fuel shortages,” YPF said. “Gasoil for agricultural production is guaranteed,” YPF added, without giving more details on supplies.

The above is a compendium of business news from the media.

If you need further information please contact Carlos Alfaro at cealfaro@alfarolaw.com.