ARGENTINA is expected to adopt incentives for new oil and gas drilling.

The government sent Congress a proposal in late May that would allow oil and gas companies to claim faster tax depreciation on assets used for new drilling — both at expansions of existing projects and at completely new projects. The measure would also exempt equipment imported for such drilling from import duties. Companies are also supposed to receive faster refunds of value added taxes paid on such equipment. The measure is expected to pass Congress easily.

There is a tradeoff. Companies will have to enter into some unspecified form of association with the state-run oil company, ENARSA.