Petroleo Brasileiro SA (PETR4) will face tighter control from Argentina’s Santa Cruz province after the Brazilian oil producer failed to invest enough to boost output, El Cronista said, citing provincial governor Daniel Peralta.
Santa Cruz also started talks with Argentine state-run oil producer YPF SA (YPFD) to extend its licenses in the province, Peralta said, according to the Buenos Aires-based newspaper.
Petrobras, as the Rio de Janeiro-based Brazilian state-run company is known, operates in the neighboring country through its Petrobras Argentina SA (PESA) unit.
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