Tecpetrol Could Have Legal Case Against Argentina

Argentina’s former energy secretariat Javier Iguacel says Tecpetrol has enough arguments to proceed with a case against the Argentine government regarding recent changes in its interpretation of the country’s gas scheme, online media reported April 11.

“Justice will define the situation and I believe [Tecpetrol] has sufficient arguments to advance its case and it’s logical that they do so,” reported online media Rio Negro, citing Iguacel.

In early April Tecpetrol, the Argentine oil and gas affiliate of Techint, said it was pondering legal recourse to defend its multi-billion-dollar investments in its Fortin de Piedra project. Tecpetrol believes it is entitled to funds owed by the government for lifting gas production at the project under the country’s gas subsidy scheme, officially known as Resolution 46.

“The resolution doesn’t say anything about volume restrictions, and the solution announced by Argentina’s finance minister Nicolas Dujovne will slow gas developments and [the problem] could have been solved with a more productive vision,” said Iguacel, who resigned his post at the secretariat in late December 2018 and was replaced by Gustavo Lopetegui.

“I am convinced that with some reasonable changes, taking into context a situation where there is no money, what should have been done was to postpone payments a bit and announce a volume ceiling, but with a ceiling you can’t tell the company that has invested to reduce its output,” he concluded.