Weekly Report - 31 October 2006

ARGENTINA: Provinces gain control of oil and gas. The federal planning minister, Julio de Vido, signed an agreement last week with the governors of hydrocarbon-producing provinces to pass control of the natural resources over to the provinces. They will now be able to levy taxes and renegotiate concessions. The governors of Mendoza, Julio Cobos; Formosa, Gildo Insfrán; La Pampa, Carlos Verna; Rí­o Negro, Miguel Saiz, Santa Cruz, Carlos Sancho; and Tierra del Guego, Hugo Cócarro, attended the ceremony in the Casa Rosada. The initiative must go to congress for approval.