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Argentine Governors Seek to Boost Oil Production, Cronista Says

Argentine governors will consider measures to get oil companies to boost production, removing their concessions if they don’t invest, El Cronista Comercial said, citing a provincial official it didn’t identify.

The governors of Argentina’s 10 biggest oil-producing provinces, including Chubut, Neuquen and Mendoza, will meet Feb. 9 in Buenos Aires to discuss the measures, Cronista said. The companies’ licenses will be removed if they don’t guarantee oil and gas production levels required by the provinces, the Buenos Aires-based newspaper reported.

Argentine oil production declined 18 percent in 2010 from 2003 while gas production fell 8 percent, El Cronista said, citing a report from the energy secretariat.

The governors’ meeting comes as President Cristina Fernandez de Kirchner steps up pressure on companies including YPF SA (YPFD), Argentina’s biggest energy producer, to boost investments and production.

To contact the reporter on this story: Camila Russo in Buenos Aires at crusso15@bloomberg.net

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net

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