Argentina cuts oil export tax

Oil exports: Argentina cuts tax for foreign shipments

Reuters/Scanpix

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By News Wires

 07 January 2013 21:24 GMT

Argentina unveiled a new system of export taxes on oil shipments on Monday that will cut levies as the government seeks to lure investment to revive stagnant production, according to reports.

The change means energy companies will receive $70 per barrel of exported oil, up from $42 previously. Argentina controls the price of oil exports in order to guarantee domestic supply, Reuters reported.

Until now the state kept the difference between the international price for Argentine crude -- currently between $80 and $90 per barrel -- and the reference price of $42.

The reform means that the state will only retain the difference between the market prices and $70, meaning increased revenue for oil companies that export crude.

Energy analysts said the measure, which was…

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