The Commission created by decree 1277/2012 is dissolved and other regulatory changes are enacted


A. Introduction

Decree 272/15 (“Decree 272”) was issued by the Executive Branch on December 29th, 2015 and published in the Official Gazette on January 4, 2016.

Decree 272 dissolves the Planning and Strategic Hydrocarbon Investment Commission (the “Commission”) that had been created by Decree 1277/12 (“Decree 1277”). In addition, several stipulations included in the Regulation of the Sovereign Hydrocarbon Regime (the “Regulation”) also approved by Decree 1277 are abrogated.

Decree 1277, issued with the purported end of regulating Law 26.741 (YFP expropriation), had given rise to relevant legal challenges as it was argued that the regulation had exceeded legal limits as well as interfering with provincial powers, against constitutional and legal provisions.

With the dissolution of the Commission and the abrogation of several stipulations included in the Regulation, Decree 272 has sought to overcome controversies with the aim of providing clarity and certainty to all players in the hydrocarbon industry, whether public or private.

B. Dissolution of the Commission

Pursuant to Article 1 of Decree 272, the Commission is dissolved. Article 3 awards the Ministry of Energy and Mining (the “Ministry”) the exercise of powers previously held by the Commission.

All acts issued by the Commission will remain in force insofar a resolution issued by the Ministry does not provide for its abrogation.

C. Abrogation of rules set out in the Regulation

Article 2 of Decree 272 abrogated articles 2, 3, 4, 5, 13, 14, 15, 18, 19, 20, 21, 25, 26, 27, 28, 31 y 32 of the Regulation.

  • Articles 2, 3, 4 y 5 referred to the Commission, dissolved by Article 1 of Decree 272.
  • Articles 13, 14, 15, 18, 19, 21, 25 y 26 referred to obligations imposed to producers, refining companies, transportation companies and retailers in the hydrocarbon industry with regards to the submission of Investment Plans and the Commission’s audit powers.
  • Article 20 banned refining companies from ceasing fuel supply and awarded the Commission with the power to impose penalties.
  • Articles 27 y 28 awarded the Commission with the power to fix prices and audit costs.
  • Article 31 detailed penalties that the Commission was authorized to impose.

Article 4 of Decree 272 provides that the Ministry will undertake a full review of regulations referring to information duties in the hydrocarbon industry with the aim of streamlining information provision and registries.

D. Other rules

Decree 272 provides, in its Article 6, that the shareholder rights from the National Government in YPF will be held by the Ministry.