Argentina

Shell has been present in Argentina since 1914. Shell performs upstream activities, mostly in the Neuquén basin, applying unconventional technologies in the Vaca Muerta formation. Early in 2019, three blocks were progressed to the development phase and work to build a new production facility started. At the end of 2019, Shell entered into an agreement to acquire, jointly with Norwegian national oil company Equinor, a company that holds a substantial interest in a major block, Bandurria Sur, operated by YPF, Argentina's national oil company. In 2019, Shell also started exploration activities in two offshore blocks in the Cuenca Argentina Norte basin (South Atlantic) jointly with Qatar Petroleum.

In 2018, Shell sold its Argentinian Downstream business to the Raízen Group, which is a 50:50 joint venture between Shell and the Brazilian company Cosan. The Shell brand continues to be present in the country through a brand licence agreement with Raízen.

Country Financial Analysis

The statutory corporate income tax rate in Argentina is 30%.

Shell’s upstream activities incurred operating losses because the Vaca Muerta assets are still in pre-development, so significant production has not started and therefore tax is not owed.

The significant decrease in revenues and number of employees in 2019 compared with 2018 is due to the sale of the Downstream business.

Our Payments to Governments Report for 2019 also shows that Shell paid around $19 million in royalties and fees.