BUENOS AIRES, May 14 (Reuters) - Argentina has agreed to pay$217 million to two energy companies in long-standingarbitration cases stemming from its 2001/02 economic crisis,part of the center-right government's efforts to lure backforeign investors.
The country will pay damages to Britain's BG Group, nowowned by Royal Dutch Shell, and U.S. firm El PasoEnergy, now owned by Kinder Morgan, the Argentinefinance ministry said in a statement late on Friday.
"Both agreements put an end to the claims and level the wayto re-establishing direct investments, particularly fromcompanies coming from the associated countries (Britain and theUnited States) and in the energy sector," the ministry said.
The World Bank's International Centre for the Settlement ofInvestment Disputes (ICSID) had found in favor of both companiesin 2014.
Last month, Argentina returned to global debt markets andpaid off 'holdout' creditors, 14 years after a massive sovereigndebt default that triggered an exit of investors and a wave oflitigation.
New business-friendly President Mauricio Macri hopes closingthat painful chapter in the country's history will bring downborrowing costs across Latin America's third-largest economy andattract the investment needed to kick-start growth.
The government is keen to move towards energy self-suffiencyand Macri has promised to increase investment in the oil sector,particularly in renewable energy and the sprawling Vaca Muertashale formation in Patagonia.
The payment will be via dollar-denominated bonds, thegovernment said. (Reporting by Juliana Castilla; Writing by Rosalba O'Brien;Editing by Helen Popper)
