By OGJ editors
HOUSTON, Nov. 9 -- Argentine President Nestor Kirchner on Nov. 2 signed a law creating an energy company called Energia Argentina SA (Enarsa). The Argentine government will own 53%, and the provinces will own 12%.
The remaining shares will be traded on the Buenos Aires Stock Exchange. Enarsa was formed in part to help increase Argentina's electricity-generating capacity. In April, the government acknowledged a natural gas shortage and problems generating enough electricity to meet forecast demand.
Enarsa will be involved with exploration and production, transportation, and marketing of oil, gas, and electricity. It will seek alliances with Latin American oil companies to explore exploration and production concessions off Argentina.
Meanwhile, Chinese President Hu Jintao is to visit Buenos Aires Nov. 15-16 to discuss trade relations between the two nations, including possible oil exploration and transportation partnerships. Hu's Argentine visit is part of a Latin America tour.
Representatives from China Petrochemical Corp., China National Petroleum Corp., and China National Offshore Oil Co. have expressed interest in meeting with Argentine energy representatives.
Also in Argentina, the provinces of Tierra Del Fuego and La Pampa are working with lawmakers to create their own oil companies. A national decree enables each province to award exploration permits and production concessions and to oversee other oil and gas operations in its jurisdiction.