LONDON (Alliance News) - Andes Energia PLC on Tuesday noted the move by Argentina's new energy minister to set the local price of crude oil at more than double the current world market price.
Andes, which has oil and gas assets in Argentina, said the country's energy minister, Juan Aranguren, has reset the local price of crude oil in the country at USD67.50 per barrel. It said this means operators in the Neuquen basin will now receive approximately ARS930 per barrel, up from about ARS740 per barrel in 2015.
Brent oil is currently trading just above USD30 per barrel, and Andes said the new local oil price set by the Argentinian government "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."
Shares in Andes were untraded on Tuesday, having last traded at 17.00 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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