MercoPress. South Atlantic News Agency

Repsol says it has invested over 20 billion dollars since taking over YPF in 1999

Denies Argentine government allegations as “false”

Spain’s energy corporation Repsol describes as ‘false’ Argentine government allegations that its affiliate YPF “had not invested sufficiently” in its hydrocarbons interests in Argentina.

In full page statements contracted in the Tuesday edition of Buenos Aires main dailies, Repsol argues it has invested “over 20 billion dollars” between 1999 when it took control of YPF and 2011.

“YPF annual investments have been superior to any other hydrocarbons operator in Argentina” insists Repsol in the ads published a day before the Argentine Senate full house begins to debate the nationalization of a majority stake in the Spanish oil company affiliate YPF.

The Repsol communiqué states that in 2010 “while YPF invested 2.158 billion dollars, the second operator only managed 870 million dollars while the rest between 300 and 200 million dollars, “according to the last info published on the issue”.

Likewise YPF in 2009 invested 1.356 billion dollars; 2.158 billion in 2010 and 3.255 billion last year.

The administration of President Cristina Fernandez alleging insufficient investments to boost production of oil and gas from YPF, and based on the “public interest” sent a bill to Congress for the nationalization of a majority stake, 51%, in Repsol’s affiliate.

On Wednesday the Senate floor will debate the bill which is expected to be approved by a comfortable majority, including the opposition. The decision to nationalize YPF has a 62% Argentine public opinion support according to polls.

The bill also contemplates the seizure of Spain’s shares in YPF Gas, the major liquid gas distributor and retailer in Argentina.