Argentina's YPF to Ship Oil to China, Spurred by Subsidy
Argentine state oil company YPF a will export 200,000 barrels of oil to China in a deal spurred by a new government subsidy designed to encourage drilling in the South American country, a market source familiar with the deal said on Wednesday.
It would be YPF's first export of crude in two years, the source said. The country has struggled to attract investment needed to increase oil production and reverse its position as a net oil importer.
President Mauricio Macri, elected in November, has implemented sweeping policy changes aimed at increasing investment and opening Argentina's economy after eight years of heavy trade and currency controls under previous leader Cristina Fernandez. She nationalized YPF in 2012.
Responding to low international prices, the Macri government has instituted an incentive program providing a subsidy for oil exports.
(Reporting by Juliana Castilla)
