Argentina forms $2bn state oil, gas fund

Argentina energy: Government forms $2 billion fund for financial development

Argentina will set aside $2 billion from central bank funds to help fund energy projects helping lead to the country’s energy self-sufficiency, according to a resolution published Friday in the country’s official gazette.

Argentina, which a year ago this week announced it would expropriate a majority stake in No. 1 producer YPF, has struggled to line up financing for reserves estimated by the US Energy Information Administration as the world's largest.

The money could be used to make loans, realise capital contributions or provide project financing for exploration, processing and marketing of oil and gas, according to the document.

It will be overseen by a committee comprised of economy secretary Hernan Lorenzino, political economy and development planning secretary Axel Kiciloff and finance secretary Adrian Cosentino.

The country remains in negotiations to finalise a deal with Chevron envisioned as providing a yearlong agreement to drill 100 wells in Loma La Lata Norte and Loma Campana areas.

A pilot agreement signed in December gave the US supermajor exclusive rights in a four-month period to negotiate a 50% stake.

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