The national government set the local crude oil reference price at 45 dollars per barrel, in a bid to protect the country’s hard-hit sector from the impact of the coronavirus pandemic and low global prices.
The national government set the local crude oil reference price at 45 dollars per barrel, in a bid to protect the country’s hard-hit sector from the impact of the coronavirus pandemic and low global prices.
The new price of the "Criollo" barrel will be valid until December 31, 2020, or until the "'Brent 1st Line - ICE' exceeds the 45 dollars for ten consecutive days", stated the Decree 488/2020.
The Decree also informed that the price will be adjusted to each type of crude oil by quality and by loading port, based on the same reference.
It also stated that the set price will be applied in all the cases of crude oil deliveries in the local market for the payment of hydrocarbon royalties.
The Decree highlighted that, during the fixed term, the producing companies will have to maintain the levels of activity and production registered during 2019, taking into account the current contraction of the national and international demand due to the impact of the pandemic.
The producers will have to apply the same criteria to keep the existing contracts with the regional services' companies, and must maintain the number of workers they had on December 31, 2019.
