(Alliance News) - President Energy PLC on Wednesday noted the government of Argentina's decision to set a fixed reference price for oil.
The government decree has signed earlier this week and set the price for Argentina standard Medanito crude oil at USD45 a barrel, though this is "subject to local usual quality discounts".
This legislation has gone immediately into effect and will last until either the end of the year or until the ICE Brent price is more than USD45 per barrel for more than ten days in a row - whichever happens first.
President's exploration assets are located primarily in Argentina, and core production from its Neuquen basin assets fall under the Medanito category.
Argentina is conducting a phased exit from Covid-19 lockdown measures, with a large number of industries returning to work an increase in road traffic.
The fixed price will be reviewed periodically. The decree also includes requirements compelling refiners to pay producers on the fixed price basis and preventing them from buying crude oil abroad.
President said: "The actions by the government of Argentina to protect and promote the internal hydrocarbon industry as a whole is welcomed. Out of an abundance of caution, the practical implications of the decree, its implementation and effect upon President is being considered by the company and further comment will be made once the effect on the ground becomes clear and demonstrative."
By Anna Farley; annafarley@alliancenews.com
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