The government will subsidize oil companies in Chubut if Brent barrel does not increase over US$ 47.5

The Ministry of Energy and Mining, directed by Juan José Aranguren, issued Resolution No. 21, by which they explained the conditions for the incentive of US$ 10 per barrel that is shipped abroad from the San Jorge Gulf Basin, of which US$ 7.5 will be provided by the Treasury, while the other US$ 2.5 will be in charge of the province of Chubut, as long as the Brent barrel is bellow US$ 47.5. Although originally it was meant to last only six months, finally it will cover the whole year. The subsidy will not generate any royalties for the province.

The purpose of the program is to maintain the 20% of the production of Escalante barrels in San Jorge Gulf Basin that has to be exported since it exceeds local refineries. Unions were claiming that without a program like this, the decrease of oil prices would have leaded to the loss of 5000 jobs.

Notwithstanding that the subsidy is not enough for the companies to ride out the differences with the local price of Escalante that is around US$ 55, there was an agreement of all the involved parties to keep the jobs and delay salary negotiations.