10600
Argentina energy Co. Offers 1st Int’l Bond
World Economy

Argentina energy Co. Offers 1st Int’l Bond

Argentina’s state-run energy firm YPF will tap global markets for a $750 million bond on Wednesday, the government said, the company’s first international debt sale since the South American country tipped into default in July.
Argentina needs to ramp up production from its vast but barely tapped Vaca Muerta shale oil and gas resource in order to reverse a gaping energy sector trade deficit that is pressuring low foreign reserves, Reuters reported. Cabinet Chief Jorge Capitanich said during his daily news conference that the bond sale “was aimed at boosting investment volumes in the context of becoming energy independent.” The bond auction, with Citigroup, JPMorgan Chase & Co and Banco Itau Argentina acting as lead mandate banks, begins at 1000 local time (1300 GMT) and closes at 1530 (1830 GMT), YPF said in a statement. The security’s listing is in Luxembourg and Buenos Aires.
Argentina has the world’s second largest shale gas resources and fourth largest shale oil resources but officials say financing is beyond the reach of state-controlled energy firm YPF and regional governments.
Chevron Corp, Petronas, Royal Dutch Shell and Total have dipped their toes in but their initial investments fall short of putting Argentina on the path to energy independence. Chinese energy giant Sinopec signed a preliminary agreement on Jan. 28 to develop projects in Vaca Muerta.  
Last year, the Argentina’s oil and natural gas imports exceeded its energy sector exports by more than $6 billion.
On Wednesday, a government stimulus program to increase production and bolster exports kicked in, with producers set to receive a maximum $3 per barrel subsidy when their quarterly output exceeds a government-set base level.

 

Short URL : http://goo.gl/KwY8Hj

You can also read ...

Report says China’s economic development must rely on integration between innovation and industrial production,  and work must be done to ensure that innovation progress was passed on to production.
China's new economy will account for an estimated 12% of the...
The process of building a new government could take weeks, so markets may well move on from the result quickly.
Politics dominated trading on Monday, with the euro sliding as...
World countries are casting a shadow on the future of the global economic system.
Next month, when finance ministers and central bank governors...
EU Seeks Protection for Uber-Style Jobs
The European Commission said on Monday it wants more social...
The economy’s return to growth has eased pressure  on the authorities.
Now that Nigeria’s economy is recovering from its worst slump...
US to See Slower Growth
The pace of US economic growth will stay stuck in the low 2%...
One mining services company said it laid off more than 50 employees.
New laws and a crackdown on mining firms in Tanzania has...
Japan PM Announces $17.8b Economic Stimulus Package
Japanese Prime Minister Shinzo Abe said he would seek to...

Trending

Googleplus