Official: Argentina's energy subsidy cuts as government tackles fiscal deficit

Energy Secretary Eduardo Rodriguez Chirillo announced on Thursday that Argentina had reduced its energy subsides by $2.7 billion in the first seven month of the year, as part the government's aim to reduce its fiscal deficit.

Rodriguez Chirillo, in a meeting held with officials from the energy industry in Houston, said that Argentina achieved a surplus of $2.9 billion between January and July.

"Our mission with the new model is to allow the investor to design his (...) model and know that he can export," said Rodriguez Chirillo.

At the same meeting, the governor of Neuquen, which is home to the giant Vaca Muerta shale gas and oil reserves in the United States, stated that the country needs to quickly remove foreign exchange controls in order to attract investment into oil and natural gas.

"We can multiply (oil and natural gas) production by six," said Governor Rolando Figueroa, adding that clear regulations, a new regulatory framework for the sector, and good resource management are necessary to achieve output targets. Reporting by Marianna Paraga in Houston, and Eliana Razewski in Buenos Aires. Editing by Adam Jourdan & Alistair Bell.

(source: Reuters)