Could you please describe the services offered by Deloitte in Argentina?

Deloitte offers a comprehensive range of services to its clients, which include audit and risk management, tax and legal advice, cyber risk and cybersecurity, and consulting, with three sub-lines: strategy and operations, technology and human capital, and financial advisory services. The company has a core team of 200 professionals specializing in the oil and gas industry, with expertise in different disciplines, such as oil field services, exploration and production, refining and marketing, storage port terminals, LNG terminals, petrochemical plants, and LPG captivation and separating units. Deloitte provides business advisory and integrated solutions for each project it works on. In particular, it has shown interest in developing Argentina’s vast shale resources in recent years, and its services range from regulatory assistance with tax and legal frameworks, including labor frameworks, to transaction diligence and evaluation services. Deloitte also helps its clients set up their businesses in Argentina, including tax and legal requirements, accounting, audit and final requirements, and change in control regulations. Once the business is set up, Deloitte provides international players with services such as business process outsourcing, accounting, payroll, and tax services, among others. It also provides expat services to help optimize the company’s costs and helps its clients import equipment for fields and other services by guiding them through central bank regulations and local tax authorities’ regulations. Other services offered by Deloitte include advisory in joint venture audits, forensic audits, governance and risk services, and control rigs compliance services. Deloitte currently works with clients in cybersecurity and cyber risk for critical data in the industry.

How does Deloitte differentiate itself from other consulting firms?

Deloitte differentiates itself by approaching the market in a multidisciplinary way, with a holistic vision. To work on clients’ issues, the company builds a team with different disciplines, such as tax experts, IT experts, internal control, security, and auditors, providing a vision from many disciplines. Deloitte also specializes in the service line and industry, going to the market to provide services to the client.

What challenges does Deloitte face when advising international companies?

Repatriating profits comes with restrictions, but it is not forbidden. The restrictions are due to the lack of reserves in the central bank. The company must ask for authorization from the central bank by presenting a good business case that shows how they generate resources for the country. Making a case is lengthy and costly, although it does depend on the state of reserves. Recent changes in energy policies, such as the change in the hydrocarbon law, increased leniency to investors, where producers that invest more than 250 million dollars are allowed to export 20 percent of their production, free of export taxes, without having to present a case.

What is your assessment of the prospects for developing shale in Argentina?

Argentina has had a huge gap between gas production and consumption for the last ten years, leading it to import energy. Currently, the country produces about 100 million cubic meters a day and imports 30 million. However, in winter, residential users demand more gas, potentially falling short and creating payment problems at central reserves. This makes it critical for Argentina to develop shale reserves. If reserves are developed and economically feasible, Argentina could be a net gas exporter again in 10 years and could become an oil exporter.

What changes need to be made to ensure the future of the oil and gas industry in Argentina?

Argentina’s regulatory framework should not change. Deloitte’s Center of Excellence of oil and gas in Houston developed a global supply and demand model, which shows that current prices are in a low cycle, but that the oil and gas market is self-correcting.