Regional fiscal benchmarking: Latin America

Existing and potential investors are enthusiastic about Latin America’s resource development potential, highlighted by a decade of deepwater exploration success in Guyana and Brazil and the growth of unconventional production in Argentina’s Vaca Muerta play. But they are concerned about political and fiscal stability. The political pendulum has currently swung in favour of more private and foreign investment, and several governments are adjusting fiscal policies to be more investor friendly. There are plenty of upstream opportunities in the region, from frontier exploration to enhanced oil recovery (EOR). Understanding the fiscal terms within a country - let alone the region - is far from straightforward, and investors usually prefer simplicity. In this report, we summarise the current fiscal state of play in Latin America.