Argentina’s top energy official will meet executives from Brazil’s Petrobras on Monday in a bid to reach a deal over the company’s investments in Neuquen province, which revoked a Petrobras concession this week, the state news agency Telam reported on Thursday.
Authorities in Neuquen rescinded concessions on three fields on Tuesday, citing insufficient investment, affecting Petrobras, Techint Group’s Tecpetrol and Argenta Argentina.
A day later, Petrobras said it had met its investment commitments and was open to talks following the withdrawal of the company’s Veta Escondida concession.
Telam said Planning Minister Julio De Vido would meet with Petrobras and Neuquen government officials “to find common viewpoints and a negotiated way forward within a framework of maximizing investment.”
Argentina’s biggest energy firm YPF, controlled by Spain’s Repsol, is bearing the brunt of government pressure for energy companies to boost production. Six provinces have already stripped YPF of concessions on the grounds of slack investment, but most have been in marginal areas. (Reporting By Helen Popper; Editing by Tim Dobbyn)