The Board of Andes is pleased to announce that, Juan Aranguren, the Argentine Minister of Energy, informed oil producing companies that the government has reset the local price of crude oil at US$67.50 per barrel.
This new price is effective from 1 January 2016 and follows from a devaluation of the AR$, which took place in the latter part of 2015. This means that oil companies operating in the Neuquen basin will now receive approximately AR$930 per barrel compared to approximately AR$740 per barrel in 2015.
The new price is more than double the current international price of approximately US$32 per barrel and provides a strong incentive to continue to invest in exploration and production activity in the country and provides evidence of the government implementing policies to support the development of Argentina's domestic resources.
