On November 3, managing director of Cefeidas Group, Juan Cruz Díaz, was published in the Dialogue’s Latin America Advisor. Díaz commented on reports that Sinopec, a Chinese oil and gas company, plans to sell some of its assets in Argentina. He responded to the following questions:
Chinese oil company Sinopec is reportedly willing to sell its oil assets in Argentina at a loss of approximately $1.5 billion, citing worsening economic conditions in Argentina, financial losses and labor issues. The decision comes despite recent reforms made by the administration of President Mauricio Macri aimed at making the country’s oil sector more business-friendly, including brokering a deal with labor unions in order to calm tensions and lower production costs. Why is Sinopec leaving Argentina’s oil sector? Are the Macri administration’s energy-sector reforms failing to keep investors in Argentina? What can Argentina’s oil sector offer that will attract international investors moving ahead, and what more could the Argentine government do to bring in more investment?
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