HYDROCARBONS

Law 26,659

Establish conditions for the exploration and exploitation of hydrocarbons in the Continental Continental Platform. Sanctioned: March 16, 2011 Enacted in Fact: April 12, 2011

The Senate and Chamber of Deputies of the Argentine Nation, meeting in Congress, etc., are sanctioned by law:

Article 1-The exploration and exploitation of hydrocarbons in the Continental Continental Platform can only be carried out by observing the conditions established by this law, the laws and regulations in force.

Article 2-Any natural or legal person, national or foreign, who performs or is authorized to carry out activities in the Republic of Argentina and its shareholders is prohibited from: 1. Develop activities in the Continental Continental Shelf without obtaining the relevant rating issued by the competent authority of Argentina; 2. Having direct or indirect participation in legal, national or legal persons foreign companies, which carry out the activities of the Continental Continental Platform without having obtained the relevant rating issued by the competent Argentine authority, or providing services for such developments; 3. Contry and/or carry out activities such as water, trade, trade, economic, financial, logistical, technical, consultancy and/or advisory operations, whether for consideration or free, with natural or legal persons, national or foreign, to develop activities in the field of Continental platform Argentina without having obtained the relevant rating issued by the competent authority of Argentina.

ARTICLE 3-The implementing authority shall proceed, after administrative proceedings, to disable for the period of CINCO (5) twenty (20) years the natural or legal persons, national or foreign, who do not comply with the provisions of Article 2 of this law, without prejudice to any criminal sanctions which may be applicable. In the case of possessing oil concessions, they will be reverted to the national state or to the provincial states, depending on the territorial area in which they are located.

Article 4-The disablement will be registered in the national, provincial and Autonomous City of Buenos Aires registers. Also, the immediate cessation of the exemptions, tax or pre-viewing facilities that could have been granted, resulting in the expiration of the deadlines granted and the immediate enforceability of the balances that could be due.

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ARTICLE 5-The national state, the provincial and municipal states may not contract with natural or legal persons, national or foreign, their controlled or shareholders who in direct or indirect form develop activities The following are the main sources of the information provided by the Argentine Ministry of Foreign Policy, which is based on the following:

Article 6-It is the authority of this law to apply the Energy Secretariat, which is dependent on the Ministry of Federal Planning, Public Investment and Services or the body that the national executive branch designates. The implementing authority shall draw up a public list of natural or legal persons, whether national or foreign, who carry out the activities of the Continental Continental Shelf which do not have the Ratings for the carrying out of oil-related activities issued by the Argentine competent authority.

ARTICLE 7-This law shall enter into force from the ninety (90) days since its publication in the Official Gazette.

ARTICLE 8-The national executive branch will dictate the regulation of this law within a maximum period of SESENTA (60) days since its publication in the Official Gazette.

ARTICLE 9º-All the provisions of this law are established without prejudice to the rights and powers of the Province of Tierra del Fuego, Antarctica and Islands of the South Atlantic, as well as the other provinces.

ARTICLE 10. -This law is of public order.

ARTICLE 11. -Contact the national executive branch. GIVEN IN THE SESSION HALL OF THE ARGENTINE CONGRESS, IN BUENOS AIRES, AT THE SIXTEEN DAYS OF MARCH OF THE YEAR TWO THOUSAND ELEVEN. -REGISTERED UNDER NO. 26,659-JULY C. C. COBOS. -EDUARDO A. FELLNER. -Enrique Hidalgo. -Juan H. Estrada.

Date of publication: 13/04/2011

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