MercoPress. South Atlantic News Agency
Bye, bye Argentina: Spain's Repsol sells all assets and end operations in the country
Cristina Fernandez seized a majority of assets in Repsol's YPF in 2012 and two years later reached a compensation deal Spanish oil company Repsol has ended its operations in Argentina, two years after the government seized its assets. Last month the Argentine congress gave final approval to pay 5bn dollars in compensation for Repsol's stake in Argentine oil firm YPF.
The Spanish company has now announced that it has sold the last batch of bonds it received to cover its losses.
Argentine President Cristina Fernandez had accused Repsol of under-investing in oil production. Before the government seized Repsol's assets in April 2012, the Spanish company had just over 50% of YPF shares.
The company initially estimated the value of its assets at 10.5bn dollars but it later settled for about half of that amount. As part of the settlement, Repsol agreed to drop its lawsuits against Argentina.
The deal was seen as crucial in helping Argentina attract foreign investment in its shale oil and gas reserves in Patagonia, which are among the world's largest.
YPF is responsible for about a third of Argentina's oil and a quarter of its gas output.
In 2010 Argentina started importing fuel for the first time since YPF was privatized in 1993. President Cristina Fernandez blamed Repsol for draining YPF of its resources since acquiring a controlling stake in the 1990s, and not investing enough to cope with growing internal demand.
However it is also true that the Kirchner couple governments froze fuel prices in Argentina and at production level thus leading to zero investment in the industry and exploration for new resources.
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Read all commentsPrice control, subsidies, they are genius in economics, the Argentinian government is the best government in the production of misery it is amazing how a country of enormous resources and gifted geography can fall in the hands of thugs left wing stupid corrupt people and furthermore how the Argentinian populous can allow that to go on.
May 24th, 2014 - 03:53 am 0The economist quote “It holds the record for the fastest economic decline in modern time”
cornelius ... I wouldn't disagree ... Thug's I don't know 100% .. BUT Stupid, idiotic, Morons only intent on filling their own pockets... Too right.. !! Truly a pity...!!
May 24th, 2014 - 12:16 pm 0What a wonderful moment for Repsol to invest in the Falklands; lots of acreage with partners looking to farm down... now that really would be exiting.
May 24th, 2014 - 01:51 pm 0Commenting for this story is now closed.
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