By Irenea Renuncio
The Argentine government’s decision on 9 August to increase natural gas wellhead prices by 300% has gone mostly unnoticed by investors, who are increasingly worried about the country’s growing political risk. The business environment continues to deteriorate amid growing policy unpredictability and resource nationalism, which is further enhanced by the new Hydrocarbon Sovereignty Decree.
Increase of gas prices unlikely to calm investors
President Fernandez is trying to attract investment in the energy sector amidst growing concerns over the industry’s exposure to government intervention, which was marked by the April nationalisation of Repsol’s YPF shares. (more…)