Repsol denies Chinese 17 billion USD offer for YPF

Tuesday, August 11th 2009 - 12:13 UTC

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The deal could be China’s biggest overseas investment

Spain’s largest oil producer Repsol-YPF denied receiving an offer for its Argentine YPF unit following a report that Chinese companies had proposed buying its stake.

Repsol hasn’t received a bid said Kristina Rix, a spokesperson for the Madrid-based oil and gas corporation. The Wall Street Journal reported on Monday that China National Petroleum Corp. and Cnooc Ltd had proposed paying at least 17 billion USD for Repsol’s stake in YPF.

The deal, which could be the biggest overseas investment by China, highlights its growing thirst for energy resources globally and its willingness to offer big money for them, and underlines the ambition of CNPC to build up its presence in South America and elsewhere.

The Chinese side discussed their offer with Repsol executives in a two-and-a-half-hour evening meeting on July 30 in Europe, the newspaper added.

Spokespersons for Cnooc Ltd., and China National Petroleum Corp. declined to comment or where not available.

However Repsol Chief Operating Officer Miguel Martinez on July 30 said that Repsol doesn’t have a “fixed price” for YPF as the company negotiates divesting part of its holding in that unit.

The Spanish company is increasing investment in exploration in Brazil’s offshore Santos Basin and regions other than Argentina to reverse four years of declining production.

Categories: Energy & Oil, International.

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Disclaimer & comment rules

Bubba
Selling YPF unit to the Chinese would be like inviting a vampire into your house, you will be sucked dry and enslaved..
Aug 11th, 2009 - 02:01 pm 0
claubruroe
The USA rejected an acquisition of an oil site a couple of years ago from particular countries, China has this sector closed to foreign control. As the main Chinese company belongs to the State, it would amount to foreign Chinese government control that may open the door to controlling other companies in Latin America and thus a strategic sector for the development of the whole region, without reciprocity. I wonder if Goldman Sachs, the deal advisor, knows in which manner this may affect the continent, including its own country -the US- in the future. Instead, the best advice would to let the Argentina State to retake the majority control, and leave open minority stakes for reciprocity to the Chinese and others... including Repsol -Spain. That would be the very best in any case.
Aug 11th, 2009 - 03:25 pm 0

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