BUENOS AIRES, April 3 (Reuters) - Argentina will pay the$1.6 billion in subsidies it owes to oil companies thatincreased natural gas production in 2017 in 30 monthly quotasstarting in January 2019, the Energy Ministry said on Tuesday.
The incentive program was implemented in 2013 to attractinvestment to the South American country's natural gas sector,but Argentina's cash-strapped government has struggled to paysubsidies on time since it began. Those delays have grown inrecent years, and the government did not make any paymentsincurred last year.
According to the resolution outlined in the government'sofficial gazette, state-owned oil company YPF SA isowed $792 million under a formula that takes into accountexchange rate movements. Last month, YPF told investors it wasowed $780 million in unpaid subsidies corresponding to 2017.
Others eligible for payments include BP Plc's PanAmerican Energy, which is owed $163 million, France's Total SA, which is owed $160 million, Germany's Wintershall, which is owed $120 million and Argentina's PampaEnergia SA, which is owed $91 million.
Energy Minister Juan Jose Aranguren had outlined thegovernment's repayment plan last month, but had not clarifiedthe exchange rate that would be used to calculate the payments,a source of concern for oil companies given that the pesocurrency has depreciated substantially since last year.
(Reporting by Luc Cohen; Editing by Dan Grebler)
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