Argentina: RIGI — Modification regarding the expansion of preexisting projects

In brief

On 22 November, Decree 1028/2024 of the Ministry of Economy ("Decree") was published in the Official Gazette, modifying Section 60 of the Regulatory Decree of the RIGI (Decree 749/2024) applicable to the expansion of preexisting projects not adhered to the RIGI ("Expansion").


Contents

In depth

The Decree primarily clarifies three relevant issues:

  1. Elimination of separate accounting: The option to maintain distinct accounting records for the preexisting project (as defined by Decree 749/2024) and the Expansion has been removed. Therefore, for the purposes of an Expansion, the preexisting project can only constitute a dedicated branch ("Dedicated Branch"). 
  2. Shared use of infrastructure and/or assets: It has been clarified that the shared use of infrastructure and/or assets between the preexisting project and the Dedicated Branch will not constitute a violation of the RIGI. This provision allows the surplus production from the Expansion to be generated using not only the Expansion's infrastructure and assets but also those of the preexisting project.
  3. Disputes: In the RIGI application, the SPV and its partners or shareholders shall accept the dispute resolution mechanisms provided in the RIGI (Section 221 of Law 27.742), including the RIGI panel created by Section 134 of Decree 749/2024.

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