Hydrocarbons Law

Enacted in 1967, the Hydrocarbons Law regulates ownership, exploration, exploitation, transport and licensing of hydrocarbons, including taxes and royalties. It has been amended several times to reflect the evolution of the Argentinian hydrocarbon industry, most recently in June 2018.

The law establishes that all hydrocarbons are the property of either the federal or provincial state, depending on where they are located. The provinces have property over hydrocarbons found in their territories, including those located in the sea adjacent to their coastline up to a distance of twelve nautical miles. Hydrocarbons located within Argentina’s continental shelf zone are the property of the federal state.

Further, this law provides that hydrocarbons' exploration, exploitation, transport and commercialisation can be developed by state-owned companies or by private or mixed-ownership firms. Consequently, the federal or regional government, where applicable, may provide licences to these companies to conduct their activities.

Finally, this law imposes environmental obligations on the licensee, such as requirements to take measures to avoid hydrocarbon waste. If the loss hydrocarbons is due to fault or negligence, the permittee or concessionaire shall be liable for the damages caused to the State or to third parties.

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