The first oil import from West Coast Africa and subsidized by the Government will take place in May 2014

Slower than expected at first, the government initiative to encourage, through a special pricing regime, the import of crude oil in order to reduce the purchasing of refined fuels (gasoline and diesel), is advancing. On Wednesday the first meeting between the Ministries of Finance and Planning and the oil companies was held, to move forward with the purchase of the first shipment of light crude, the most required by local distilleries.

The commercial trader will be YPF although the funds to purchase this shipments at international price are from Enarsa. The government decided to revive large-scale imports of crude for the first time in 20 years, following the decline of domestic oil supply Medanito type extracted from Neuquén Province. As is calculated in government offices, is more convenient to bring crude oil from abroad for processing in local refineries than paying for refined products such as gasoline and diesel. Enarsa will pay the international price of crude oil plus freight (around U.S. $ 115 per barrel) and resell the oil at a subsidized $82 value.

The first shipment of imported crude oil is expected on mid-May. Quotations for six or seven types of light crude are being requested to evaluate the most convenient. There are also two possibilities in relation to the size of the ships. One is to bring a ship of 1 million barrels of oil. The other is to work with a smaller boat, 600,000 barrels.

Translation/Article/Source El Inversor Online: