Petrobras looks to invest US$ 500 million in Argentina

In a bid to boost production, Brazil’s state-run giant Petrobras has laid out plans to invest US$ 500 million in Argentinian projects.

The agreement to maintain a high level of investment in Argentina comes after concessions were taken away from a Petrobras subsidiary, Petrobras Argentina SA, which operated in the Neuquen province.

The Argentinian government is also in the process of nationalising YPF, a company formerly owned by Repsol (whose stake has been cut to just 6%). The expropriation of YPF has concerned many investors about the security of operating in Argentina: YPF is one of the latest in a series of companies to be nationalised by the present Argentinian government.

Despite the concerns of many investors, the Brazilian Mines and Energy Minister, Edison Lobao stated that Brazil “trusts” Argentina and has no concerns about the expropriation of its assets. Petrobras’ present goal behind operations in Argentina is to boost its market share in the country from 8% to 15%.

Edited from various sources by David Bizley

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