MercoPress. South Atlantic News Agency

Repsol-YPF CEO holds “positive and constructive” meeting with Argentine officials

Antonio Brufau was told Argentina wants long term investments in the industry

The Buenos Aires media revealed late Tuesday that Antonio Brufau, CEO from Repsol-YPF, which has a dominating position in the oil and gas market in Argentina met with top officials from the President Cristina Fernandez administration.

The news follows strong statements from Argentine officials against the oil industry and those companies that ‘fall prey of short term financial profits but forget long term investments and thus don’t have a national commitment with Argentina’.

The Cristina Fernandez administration faces dwindling national production of hydrocarbons forcing an increase in the fuel imports bill (almost ten billion dollars) and claims oil companies are not investing enough in new exploration and have been involved in price-fixing collusion. Last week the Argentine government announced an end to incentives for the oil and gas industry.

CEO Brufau allegedly had a low key private interview with Argentine Economy Minister Hernán Lorenzino and Planning Minister Julio De Vido, which was described as “positive and constructive”.

“Brufau is expected to return to Spain on Wednesday and will leave with a clearer outlook” following the rumours of a possible nationalization of the oil company according to the Buenos Aires media.

During the meeting, both parts agreed to keep on working together, according to several sources. Brufau who arrived in Buenos Aires last Friday, will conclude his visit on Wednesday.

While the Spanish businessman explained YPF investment plans to the Government, Vice-president Amado Boudou insisted that “it is necessary that Repsol makes full use of its productive capacity and investment potential.”

Following a week in which rumours regarding a possible nationalization were neither confirmed nor dismissed by the Government, Boudou added that “the problem is not whether YPF is public or private,” but “if it has a national sense, if it’s functioning is thought on oil production or on short term financial logics.”

Brufau’s arrival in Buenos Aires on Friday happened the same day that the Argentine government announced that it was cutting incentives to fuel and petrol production worth 460 million dollars. On January 15th, the Government accused oil companies, Repsol, Shell, Esso, Petrobras companies of irregularities in the bulk price of gas oil.

Oil company YPF is owned by Spanish Group Repsol which has 57.43% of shares and is managed by Argentine Group Petersen, which holds 25.43% percent of the company’s shares. Grupo Petersen belongs to the Eskenazi family, who got into the business with late President Néstor Kirchner’s approval.