in a nutshell
Decree 277/2022 (“Law“) was regulated by Decree 484/2022 published in the Official Gazette on 16 August 2022 (“regulation”).
This decree creates a foreign exchange market access regime for incremental oil production (RADPIP) and natural gas production (RADPIGN), with flexibility to access the foreign exchange market (MLC) for percentages of incremental production or incremental injection volumes. provide sexuality. volume in some cases.
This regulation establishes general conditions for the benefit of both E&P companies and their direct suppliers and/or related third parties. Beneficiaries will be able to calculate profits from the third quarter of 2022. Nevertheless, it shall issue additional regulations for its implementation, as indicated by various authorities (AFIP, BCRA, Energy Secretariat).
in focus
- Beneficiary: The Regulations shall apply to persons who are beneficiaries pursuant to the provisions of the Decree (“Beneficiary“) also present jointly with other legal entities (relevant third parties), provide credible evidence of contractual relationships, and You can prove a minimum investment of $50 million.
- How and when to apply for benefits: Beneficiaries can apply for benefit approval from October 2022 (third quarter of 2022). Thereafter, at the end of each quarter, compliance with requirements and the Energy Secretariat (“Secretariat”). Benefit approval must be requested in the form of an affidavit within 15 business days after the end of each quarter. Once the requirements have been met, the Secretariat shall issue a certificate to be notified to the Beneficiary, AFIP and BCRA. In exercising the rights conferred by the Decree, the BCRA and the Secretariat shall be informed of the destination of foreign currency. Benefits do not expire and are cumulative to MLC access.
- Transfer of profits to suppliers: The Regulation established the method of allocating profits to direct suppliers of beneficiaries. In this regard: (i) the beneficiary’s direct supplier provides special services for hydrocarbon production, including fracturing services, well drilling and rigging equipment, and/or others defined as special services by the Secretariat; Established what is defined as a legal entity. (ii) in order to transfer the interest, the beneficiary may make a specific sum of money in favor of its direct suppliers, specifying the services to be provided, the terms of the commercial relationship and the manner of contract before the Secretariat; You must demand the transfer of profits. This will confirm that the conditions have been met and notify the BCRA.
- Implications and Waivers: Compliance with the scheme includes all requirements laid down in both decrees and regulations, and mechanisms established by the Secretariat to verify the veracity of information provided, including information exchange mechanisms with AFIP and BCRA. means voluntary acceptance of Interested parties expressly waive any administrative and/or judicial action against the nation-state in relation to Plan Gas.Ar and Decree 892/20 each time they apply for benefits and cease any claim initiated prior to issuance. shall be of this decree.
- Pending implementation actions: AFIP, ENARGAS, BCRA and the Secretariat are instructed to provide the means, mechanisms and, where necessary, complementary rules for the proper functioning of the aforementioned regimes.
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