Dead Cow rest in peace: the "jewel" devours the slot

Before a possible change of government in the midst of the economic crisis, two data generate peace in the field of energy. On the one hand, according to the specialized website "EconoJournal", the current national government has canceled the million-dollar historical debt with the generators (among which Pampa Energía, Puerto Central, YPF Luz and Aluar).

These are old credits accumulated during the freezing of residential rates, which the Ministry of Energy canceled last Friday.

According to private sources mentioned on the site mentioned, the total disbursement amounted to about 120 million US dollars at the official exchange rate, and indicates that, although the negotiations take place in several months, "the payments took place in one of the most delicate moments of the national state, marked by the exchange and banking management".

So he summed up the payment path:

"Talks began last year when the sales processes of Brigadier López and Ensenada Barragán plants, which belonged to the public company IEASA (Ex Enarsa), were launched. The producers then stated that to facilitate the financing of the cycle closure work in these mills, which is a mandatory condition of the sales document, it was positive that the government would cancel this debt; in particular because of the lack of international funding.

The claim was furthered after March 1, the Ministry of Renewable Resources and the Electricity Market issued Resolution 1/2019 reducing producer compensation for the operation of thermal and hydroelectric generating 60% of the electricity produced. Argentina consumes. The measure has had a complete impact on plants that have been in operation for years and do not benefit from any promotional program such as Renew, Foninvemen and the contracts of resolutions 220/07 and 21/2016, 287/17. Those concerned included Pampa Energía, Puerto Central, Enel, AES, Albanesi and Orazul Energy.

In this context, the proposal made to the producers to operate as an incentive and at the same time, offset, consisted in canceling accumulated credits plus funds equivalent to non-recurring maintenance not carried out in a single installment with a withdrawal of 18%.".

The negotiations with the companies were individual and Friday, most of them finished receiving the payments.

In addition to the details that no one opposed this disbursement, one fact that clearly establishes a kind of agreement between Together for Change and the All Front in this area is that, furthermore, the CEO of YPF since the nationalization of 2012 to 2016 and the current President and CEO of the oil company Vista Oil & Gas, Miguel Galuccio, made a statement as part of a special show of "Bloomberg TV ", In which he confirmed that there would be continuity in the sector before a possible Kirchner government.

"If Cristina Kirchner is chosen, with Vaca Muerta, she will do what is necessary to continue what we are doing and accelerate it.", he said with the advantage that it was registered in April, before the price of crude oil was frozen, which then resulted in the filing of a lawsuit by the company.

The report was prepared at Vista headquarters in Neuquén and its main badet at Vaca Muerta, Bajada del Palo Oeste, where the company had already put eight unconventional wells into production, making it the second largest producer. of the most important shale oil from Vaca Muerta.

Although the special has entered other players in some South American countries, Bloomberg TV has put a special emphasis on Vaca Muerta, and in the case of Vista as the first public and independent company in the world. E & P to arrive in the area.

"If Macri is elected, I think he will do the same. It is very difficult for the Argentineans to agree on something, but in the last six years, representatives, society, unions and companies, we agree that Vaca Muerta represents a huge opportunity for the country."Remarked Galuccio.

"Argentina needs companies like Vista: agile, innovative, enterprising." Our company is the first of its kind in Vaca Muerta. "Bajada del Palo is a block with extraordinary potential." In reality, we can drill 400 well in the area., but we would only need 150 to achieve fantastic growth, which gives an idea of ​​its wealth."he said.

Galuccio also noted that Vista had also successfully channeled numerous investments from different parts of the world, such as the Middle East, Mexico, institutional investors from the United States, Canada and Europe.

In addition, he said about Vaca Muerta that "What is at stake is huge. This can dramatically change the country's economy and change people's lives. If we achieve complete development, I'm sure we can double the revenues generated by other industries, such as agriculture.".

"It is essential that we start exporting. I think next year we will probably start exporting light fuel oil from Vaca Muerta. We must free the market and change our state of mind, because today we have more than necessary. We must stimulate the system and the market to position Vaca Muerta on the external market".