YPF dispute in calmer waters: Argentina yields and Repsol CEO calls for dialogue
The CEO from Spain’s main oil corporation Repsol, Antonio Brufau said that there should be no speeches or attempts to impose, but rather more dialogue, in direct reference to the ongoing conflict with the Argentine government over the possible takeover of the YPF branch.
“There should be no speeches or attempts to impose, but try to establish more dialogue” to resolve the conflict that is threatening to re-nationalize YPF of which Repsol holds almost a 60% stake indicated CEO Brufau in a round of interviews with Buenos Aires radios.
CEO Brufau talked extensively about the dispute but at no moment chose to reveal Repsol's strategy to prevent the advance of the Cristina Fernandez administration, saying only that the situation will not be resolved by imposition and called for more dialogue.
“The conflict resolution has to be achieved in offices, in private, and not through public speeches. We are trying to make things the right way”, Brufau remarked and added; “We are trying to talk to whoever we have to talk within the Argentine government”.
Likewise, he insisted “We must talk, talk, and talk, instead of imposing things.”
Brufau arrived in Buenos Aires last weekend with expectations of having a meeting with President Cristina Fernandez, but apparently he only managed to reach Federal Planning minister Julio De Vido.
Spain’s Repsol could lose its majority stake in YPF if the Argentine government decides to move forward on the expropriation or nationalization of the company, alleging a sharp decline of investment, hence oil and gas production, in the last decade according to the administration of Cristina Fernandez.
Meantime the Buenos Aires daily La Nacion published on Sunday that the Argentine government has decided to postpone the planned state takeover of YPF.
“The government will wait for the return of the president and will begin a round of negotiations with all parties involved” said La Nacion which did not reveal sources. The strong international reaction to the “public interest” draft bill sent last week to Congress which would open the way for the nationalization of YPF left the Argentine government “disconcerted”.
Last Thursday the Argentine president had been expected to announce the compulsive takeover of a majority control of YPF, 50.01%, based on the draft bill sent earlier in the day to Congress.
Apparently the Argentine government is divided on the issue with a group pushing for the takeover while the moderates feel the international and legal consequences of such a move are far too risky.
According to La Nacion the target would be now to have control over a 30% of YPF, but based on negotiations and a consensus with Repsol and other main shareholders. Before the dispute erupted three months ago YPF had an estimated value of 18 billion dollars but since, because of the uncertainties generated has dropped to 10 billion.
“The Argentine government could offer 6 billion dollars and begin negotiations on the percentage stake and a time table for its completion”, reports La Nacion, but quoting government sources points out that this does not ensure the main goal of the current situation which is increasing investments and production, “something which will only be palpable in four to five years”.
What is certain is that the Thursday announcement was suspended given the strong warnings from Spain, the unequivocal support for Madrid from the European Union and indirectly from the US.
Spain used such words as “aggression”, “economic and fraternal rupture”, boycott to Argentine “soybeans and beef”, and “breaking the rules has its consequences”.
However on Saturday Spain through its Minister of Industry, Jose Manuel Soria sounded more conciliatory arguing that he was optimistic since “things seem to be returning to course”.
Besides the recent suspension by some Argentine provinces of YPF concessions also punished Chile’s oil corporation Enap which is an associate of YPF in some fields and furthermore one of the shareholders of Repsol is the powerful Pemex, Mexico’s oil and gas state monopoly.
YPF extracts 54% of Argentina’s oil and 43.8% of natural gas production.
Suggested Stories
-
May 16th 2013
Chevron agrees to invest 1.5bn dollars in developing YPF shale field in Patagonia
-
May 15th 2013
Paraguay on Independence Day blasts Argentina and Brazil over “power resource exploitation”
-
May 18th 2013
Venezuelan oil monopoly in joint ventures with Chevron and China Petroleum
-
May 17th 2013
Argentina’s ‘autarkic project’ worsens bilateral relations and multiplies problems
27 comments Feed
Note: Comments do not reflect MercoPress’ opinions. They are the personal view of our users. We wish to keep this as open and unregulated as possible. However, rude or foul language, discriminative comments (based on ethnicity, religion, gender, nationality, sexual orientation or the sort), spamming or any other offensive or inappropriate behaviour will not be tolerated. Please report any inadequate posts to the editor. Comments must be in English. Thank you.
People resent it when they see a foreign company coming and taking everything without investing and creating more and better jobs. The spanish do not invest, they try to get the best deal for themselves and try to do business on top of other countries and peoples. They get what they pay for.
The Argentine governemnt is incapable of looking long-term or thinking through the consequences of their actions and decision making. This comes from having a mentally incapable, tyrannical leader with an uncontrollable temper. (She admitted this herself) Everyone agrees to her slightest whim because they don't want to anger her. They lie to her for fear of another outburst. And the Argentine people suffer thhe consequences.
They are better at going backward then they are going forward. At some point they need to realize they should keep their mouths shut, what is the saying, “Better to remain silent and be thought a fool than to speak out and remove all doubt.”
They just can't help themselves though they LOVE to hear themselves bleat on and on about the injustice and how great they are...
Sad sad people.
The only people allowed to leave with any $ is CFK and her minions.
www.lanacion.com.ar/1465449-expectativa-por-un-anuncio-de-cristina-kirchner
So yes, she is stealing YPF. Should be fun to see how the Spaniards react.
Now when the spaniards invested in a foreign country´s strategic industry, they should have know that one of the risks, in Argentina, Brasil, England or anywhere else in the world, is that a country may decided to expropriate their oil industry at any time depending on their economic or sovereign interests.
The problem with this is CFK's timing. Argentina has many ongoing conflicts within Mercosur, within Latin America, with the EU, the US and other countries. To add another litigious front is quite borderline perfidious. An executive must be circumspect in foreign affairs, and pick and choose after much reflexion and perpending which battles to tackle and which others are for another day. This woman has decided in six months since October 11 to wage a 10-front war. My patience with her ha run out and it is time an investigation into her foreign policy is conducted.
Telefónica.. seguís vos!
Vamos a por todo!!
You're so right. She has taken us down roads we should have left well alone, this is just the result of her temper from the Cumbre de las Américas. We eill have to pay the cost.
Spain does NOT own Repsol, the shareholders own Repsol and these are the people that the Mad Bitch is stealing from.
Please be advised that a lot of these sort of companies have shareholders who represent retirement investments - people like yourself perhaps. Do you think it is permissible to steal from these people.
Ah! I see the problem. You have no concept of theft because you are Argentino.
and this is just the beggining..! Well done Cristina!
Telefonica, you are next..!
Yes you are living in Paradise and it will only get better!! Soon enough you may have the living standards of Bolivia or if you are lucky Paraguay.
I am not from Argentina, I am from Mexico. I understand about pension funds and believe, that has absolutely nothing to do with what is happening with Repsol-YPF in Argentina.
Repsol was created out of the ashes of the Instituto Nacional de Hidrocarburos in an effort from the Spanish government to create a national champion in the oil and energy industry. It may not belong to the state, but it is nevertheless protected with nationalism by Spain and they will never allow any foreign company to take over their shares. Mexico´s PEMEX was invited to join Repsol when it was created decades ago but only to hold a minority position, recently PEMEX tried to increase its stakes and it caught hell from the Spanish government.
Now there are thousands of companies in Mexico from the US, Germany, Holland, England, Japan and many other countries, our economy is wide open and they are present in the banking industry, energy sectors, telecommunications, etc. and nobody thinks about asking them to leave. Many American, German, Brittish and Frech corporations invest a lot, pay well to their workers, build schools and roads and contribute to the local communities where they operate. They make a lot profits of course, but they also seek to integrate and to add value to their presence in the country.
We had some spanish corporations investing in Mexico, they arrived later in the 90s, but I am sad to say they did not come with the spirit of integration and contribution as companies from other countries, they came and charged exorbitant prices. Bought local businesses only to close them down and lay off people. They are not as respected by the locals, they act as chinese firms, desperately seeking profits to take back home at all costs.
He's right. It's Malvinas 2 in the sense that it will end with a humiliating conclusion on the Argentinian side.
We were discussing Argentina and Repsol.
Thank you for the run-down on Mexico. I nearly went to live there instead of Uruguay but was put off by the drug gang warfare problem.
Yes, I know it is not everywhere: for now but it is, regrettably, spreading to other areas.
Shame really as there are some lovely places in Mexico.
#7 Great news, and just when I was getting used to a possible tactical retreat =)
#4 You were saying? =)
#19 Welcome to the boards =)
AHAHHAAHHAHAHHAHA
Who writes!
brittain,the pinacle of freedom supression,imperial grandeur.
What a bunch of NUTS the brits!!
uk is FINISHED !! Taht is the reality!
Where is the CIA? The CIA is like cops, ...when you need one..there is no one in sight!
Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!