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Argentina has lowered its tax on crude oil exports in a bid to attract new investment to boost output.
Since 2007, in a bid to stem exports, the government imposed a 100% tax on the export of crude oil on the difference between the market price and USD42 per barrel. This threshold has been raised to USD70 per barrel, to allow extraction companies to retain a larger margin from exports to improve the local industry's competitiveness. Companies will be eligible for the new regime provided the market price for crude oil remains above USD80 per barrel.
Argentina has seen oil output decline since 1998. Last year, the government controversially re-nationalized YPF in an attempt to improve domestic supply.
Although the latest measure will likely boost exports, which account for around 10% of all crude extracted, the government hopes the reform will reinvigorate industry output over the short to medium-term.
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