Monday, November 10, 2014

Gov’t on Chevron-YPF deal: ‘There are no secret clauses’

Cabinet Chief Jorge Capitanich speaks at the government house.

Cabinet chief Jorge Capitanich denied reports of secret clauses in the deal State-owned YPF energy firm has signed with Chevron for an investment of u$s 1,500 millions in Vaca Muerta shale oil and gas field. “Everything in the contract is standard for (contracts) with multinational companies,” Capitanich stated.

“There are no secret clauses, but confidentiality clauses,” the chief of ministers explained in his daily press conference in the government house. “These confidentiality clauses are standard in this type of operations, including the choice of jurisdiction for the settlement of dispute,” he added.

During the weekend, media versions accused the government of agreeing to harsh conditions set by Chevron, including sending dividends abroad, an extension of concessions up to 35 years and fiscal and tax exemptions.

“Everything in the contract is standard for multinational companies given the capital intensive capital investment for hydrocarbon exploration and explotations operations,” Capitanich said to reporters.