Tuesday, April 24th 2012 - 01:23 UTC

Spain’s Repsol threatens companies investing in seized YPF with legal actions

Spain’s main oil corporation Repsol warned it could take legal action against companies that invest in YPF after Argentina seized control of the Spanish company's energy unit last week.

Planning Minister De Vido has met with Petrobras, ConocoPhillips and plans to talk with Exxon and Chevron

The government of President Cristina Fernandez expropriated the 51% of YPF owned by Repsol, saying that the company needed to invest more to address Argentina’s energy shortage.

Argentine Planning Minister Julio De Vido approached Brazil's state-run oil company Petrobras over investment in YPF last week. Argentine officials met executives from ConocoPhillips earlier on Monday to discuss potential investments, a Planning Ministry statement said.

De Vido said last week he would make contact with foreign oil companies, such as ConocoPhillips, Exxon, and Chevron to seek to attract more investment in oil. Chinese oil companies are also known to be interested in YPF.

“Repsol reserves the right to take legal action against companies' investment in YPF,” a Repsol spokesman said on Monday.

Argentina needs hefty foreign investment to help develop its shale gas reserves, the third largest in the world.

European, US and Mexican officials have all criticized Argentina's expropriation of YPF, the country's biggest oil company, but the effects of retaliation may be limited as Argentina in the past has failed to pay settlements stemming from international trade disputes.

The only concrete measure Spain has taken so far was to curtail multimillion-dollar imports of bio-diesel from the Latin American nation.

In Luxembourg, Spanish Foreign Minister Jose Manuel Garcia-Margallo met his European Union counterparts on Monday and discussed potential measures against Argentina, which has said it will not pay Repsol the full price for YPF.

The minister said he had discussed measures such as ending trade benefits to Argentina and had received support from his counterparts.

However, Margallo said the government wanted to negotiate with Argentina's government. “We keep saying that the best thing that could happen is for us to reach a negotiated solution...and we have asked some of our European and Latin American partners to act as intermediaries in this matter to avoid a dispute, a clash which is bad for Spain, Argentina and Europe,” he said.

The European Parliament on Friday urged the executive European Commission to consider reprisals against Argentina, although it would need backing from European Union countries and the World Trade Organisation to do so.

No swift action by the EU against Argentina is expected, as Europe's trade ministers would also have to consider any proposals and, ultimately, it would be up to the European Commission to decide on sanctions.

Karel De Gucht, the European Union's trade commissioner, wrote to Argentina last week to express the bloc's “serious concerns about the overall business and investment climate in Argentina,” singling out the YPF takeover and import curbs for criticism.

“The EU keeps open all possible options to address this matter,” his letter read.
 

19 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. Comments should refer to article. Thank you.

1 Conqueror (#) Apr 24th, 2012 - 11:18 am Report abuse
This is quite a good idea. Whereas argieland threatens companies all around the world with legal action that could never succeed except in an argie court, Repsol threatens companies with legal action in all the courts of the world except those of criminal argieland.

Must be worth the effort to gain damages in, possibly, hundreds of billions of proper currencies. Eventually, argieland would have to admit its bankruptcy.
2 GreekYoghurt (#) Apr 24th, 2012 - 02:04 pm Report abuse
@1 if argtardia has currency and investments in the USA or Europe they would be able to attach those to the ruling in order to prevent their access to further foreign reserves. This is the case for the Peterson Group, who currently owe Spain £1.9Bil and I'm guessing would like to do business abroad sometimes.

So, it's a lot more effective than Argentina's threats of legal action.
3 toooldtodieyoung (#) Apr 24th, 2012 - 02:38 pm Report abuse
HA!!!!

Right back at you Argentina!!! Those who live by the sword, die by the sword.

And those that STEAL, shall not profit by it!!!

Nice one Spain
4 Pirat-Hunter (#) Apr 24th, 2012 - 03:12 pm Report abuse
Argentina should fine anyone trading with spain and if they don't pay we can auction off the businesse and use the money to pay for the fine. This is how it's done in America. Let's hope the world is ready for a decade of tit for tat with Argentina, it couldn't be worst then what is currently going on in Europe now.
India, China and pakistan can replace europe in a heart beat, Argentina should Chillax and enjoy the spot light.
www.gregpalast.com/the-globalizer-who-came-in-from-the-cold/
5 reality check (#) Apr 24th, 2012 - 04:44 pm Report abuse
PH. Good idea. Here's another one for you. Get them to pay the fines in $US.
Bugger me, I hope CFK is not reading this.
6 Guzz (#) Apr 24th, 2012 - 04:52 pm Report abuse
600 is more than enough. Bye bye Repsol, bye bye Essex. About time SA takes their natural ressources back!!!
7 reality check (#) Apr 24th, 2012 - 05:14 pm Report abuse
@6. Where I come from, if I sell you something, then take it back. It's called stealing.
8 Guzz (#) Apr 24th, 2012 - 05:45 pm Report abuse
@7 If I finance a military dictature and impose puppet leaders to rule your country in order to sell out the countrys natural resources, it may not be called stealing, but it's damn close. Pay up for the gold, silver, copper, oil and all the other natural resources Europe and USA have been stealing for the past 600 years before you call anyone thiefs. Btw, I meant Exxon, not Essex...
9 reality check (#) Apr 24th, 2012 - 06:30 pm Report abuse
While your at it, why don't you prosecute the Greeks for sacking Troy, Romans for crucifying christ and the Mongols for committing genocide or is that going to far back.
10 Guzz (#) Apr 24th, 2012 - 06:38 pm Report abuse
@9 As I already tried to tell you, the stealing of ressources merely STARTED 600 years ago, CIA supported military dictatures across SA (Brazil, Argentina, Uruguay, Chile, Paraguay) happened 1963-1990, where most of the sellout happened. Read SA history before you spit out your ignorance...

Why is it you can't live on your own resources???
11 reality check (#) Apr 24th, 2012 - 07:35 pm Report abuse
@10 Guzz. I do not have the slightest interest in reading SA history. I quite like my ignorance. What exactly is it you want the rest of the world to do, dress up in rags, rub their faces with wood ash, walk around ringing a bell and begging forgiveness for the sins of the past. We live in the 21st century, try living in it with us. That is my point.
Oh and by the way, you might like to adress yor remarks about living on your own resources to the Chinese, because, in the next 50 years and more, they are going to be the biggest buyer of the worlds resources.
12 Guzz (#) Apr 24th, 2012 - 09:00 pm Report abuse
@11 Fair enough you are ok with your ignorance, but stop spreading it around as if you know what you are on about...

Regarding the chinese, at least they PAY for the resources...
13 reality check (#) Apr 24th, 2012 - 09:55 pm Report abuse
you still do not get the point do you. Fuck it. I give up, have it your way.
14 Guzz (#) Apr 24th, 2012 - 10:03 pm Report abuse
I feel you, sometimes I run out of arguments aswell... No worries mate, it can happen to all of us. A word of advice though, in order to avoid such in the future, try embracing the truth...
15 reality check (#) Apr 24th, 2012 - 10:30 pm Report abuse
Kiss me red,white and blue British ass. You would recognise the truth if you fell over it. Byeee!!!!!
16 Guzz (#) Apr 24th, 2012 - 10:38 pm Report abuse
I would not recognize the truth? And this comes from a (self-pronounced) ignorant?? Time for a reality check, mate... :) Take care!
17 Brit Bob (#) Apr 25th, 2012 - 03:01 pm Report abuse
@4

If you steal from the US and Europe and then dream about trading with India and China instead, it will still all end in tears because as sure eggs are eggs Argentinians will lie, cheat, and steal from anyone.
18 DanyBerger (#) Apr 25th, 2012 - 04:50 pm Report abuse
@Brit Bob
“Argentinians will lie, cheat, and steal from anyone”
Is not the way Britain made her empire?
May be in the future the Sun Never Rise for SA.. sound good doesn't it?

Now what can expropriate from Britain?

Oh! there is nothing left. Bloody 'ell too late.
19 Simon68 (#) Apr 26th, 2012 - 02:31 pm Report abuse
THe way CFK is running Argentina there is absoloutly no doubt that “the Sun Never Rise” for Argentina.

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!

Advertisement

Get Email News Reports!

Get our news right on your inbox.
Subscribe Now!

Advertisement