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Vintage Petroleum, Inc. (VPI) Message Board

  • imadeadcat imadeadcat May 12, 2004 10:50 AM Flag

    Argentina tidbit todays WSJ

    "Oil export duties will be raised to 25% from 20%..." Not good.

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    • I found an article in today's WSJ about Argentina but it didn't say anything about an increase in export taxes. Instead it talked extensively about a liberalization of prices for nat gas in Argentina. (page A13)

      Vintage has emphasized Argentine oil over gas because the price of gas has been so low. The article talked about eliminating price restrictions. Even though consumer groups are objecting, the government appears to be ignoring them and pushing it through because there is a real shortage of gas going into the winter down there.

      They even talked about bringing in 8% of their needs from neighbors like Bolivia, where Vintage has some reserves. Bolivian prices have been much higher than Argentine so the price effect could be considerable if prices are completely freed in Argentina.

      This could turn a very modest gas operation for Vintage into a real gusher, more like the oil operation in Argentina.