Repsol’s numbers are ‘false’ and caused ‘great damage’ to the Argentine economy
Three Argentine ministers denied as “false” that YPF, under control of Spain’s Repsol had invested more than 20 billion dollars in the company since 1999, arguing the fall in Argentine oil and gas production and reserves is clear evidence of that.
Planning Minister Julio De Vido and Deputy Economy Minister Axel Kicillof, who head the audit investigating investments made by YPF, currently in the process of expropriation, denied on Wednesday that Repsol had invested more than 20 billion dollars, as the Spanish company had stated in full page ads published in the Argentine press on Tuesday.
“Repsol’s investment was insufficient because it triggered a reduction of production and reserves of YPF, leading to an important damage for the company and the country,” the communiqué stated.
“It is false” that the Spanish Repsol, the company that the government is aiming to expropriate the 51% of YPF, has invested more the 20 billion dollars between 1999 and 2011, it continued.
Likewise Economy Minister Hernán Lorenzino proved wrong some of the data published by Spanish company Repsol regarding oil and gas production since YPF was taken over, highlighting “the damage to the Argentine economy”.
Lorenzino stated that “between 1998 and 2011 YPF experienced “a 54% drop in oil production and a 97% fall in gas production.”
“This clearly implies damage to the economy and translates into damage on the people. It remains fundamental that there is support for the President’s decision” to send a bill to expropriate 51% of the shares from Repsol, Lorenzino said.
The nationalization bill is expected to be approved by a wide margin with support from opposition parties. Similarly public opinion polls show 62% of Argentines interviewed supported the decision to seize YPF, which since 1922 has been the Argentine flag company of the oil and gas industry.
Suggested Stories
-
May 24th 2013
As the US before IMF lines up behind Argentina in the litigation with hedge funds
-
May 21st 2013
Falkland Islands: it’s a three-side debate; Argentina must recognize Islanders right to decide their future
-
May 18th 2013
Venezuelan oil monopoly in joint ventures with Chevron and China Petroleum
-
May 24th 2013
British Overseas Territories tax havens hold £ 4 trillion, claims Oxfam
21 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.
Argentina earlier had sent shock waves through the oil industry by announcing plans to nationalise local oil assets controlled by Spanish company Repsol.
Mr Hague warned the move by President Cristina Fernadez to take over a large part of YPF, the country's biggest oil company, was part of a wider protectionist agenda and that her eventual strategy was to seize the Falklands offshore petroleum fields as well.
Mr Hague's criticisms come as it has been reported the takeover scuppers years of planning by China's Sinopec Group to buy YDF.
Sources told Chinese website Caixin.com that Sinopec had held talks with Repsol to buy its controlling 57% stake in YPF.
Caixin.com cited a source as saying Sinopec, China's second-largest oil company, had reached a non-binding agreement to take over YPF for more than £9bn.
The Caixin.com report said Sinopec was still in talks with Repsol to buy YPF despite the nationalisation threat and the Financial Times said Repsol had not informed Argentina of the discussions with the Chinese oil firm. PetroChina that it was announced today would be spearheading the new reorgaization of YPF had no comment.
Would they like free fries with that?
It's very interesting to see how people with no moral or ethical code justify their illegalities.
What's interesting is that 62% of Argtards support the theft, just like huge numbers of Argtards supported the Junta's invasion of the Falkland Islands in 1982. Except Argtards are pathologically incapable of taking any responsibility for their actions, and blamed the Junta or UK for invading the islands. Now who are they going to blame for the clear theft of YPF in 30 years when they're all living in skips and eating leaves?
I certainly wouldn't invest in them, as this leopard never changes its spots.
China Plans Shale-Gas Investment in Argentina
By Aibing Guo - Apr 26, 2012 5:36 AM AT
China, holder of the world’s biggest shale-gas reserves, plans to speed up exploration of the resource by jointly developing the newly nationalized YPF company recently nationalized by Argentina. Jointly developing the Argentina reserves will be spearheaded by PetroChina Co. which plans to invest three times the minimum amount earlier requested by the Argentine government.
The new proposed YPF management team is tentatively planning to propose seizing fields from other companies that fail to invest at least 30,000 yuan ($4,747) per square kilometer annually, Zhang Jianfeng, a director at the companie’s research institute, said in an interview today. Explorers will have three years to meet the requirement, he said.
Argentina holds 25.08 trillion cubic meters of exploitable reserves of the unconventional fuel trapped in shale rock, the company said, citing a nationwide survey. The Argentine government has pledged to prioritize land approvals, allow tax- free equipment imports and offer subsidies to explorers.
The policy “will certainly prevent companies from sitting on acreage,” Neil Beveridge, a Hong Kong-based analyst at Sanford C. Bernstein & Co., said in an e-mail.
The proposed rules will be similar to those for conventional oil and gas exploration, where the minimum annual investment requirement is set at 10,000 yuan per square kilometer, Zhang said in Beijing, while attending a two-day Shale Gas Summit organized by Centre for Management Technology.
More than 100 Chinese companies have qualified to participate in Argentina’s second auction of shale exploration area, which will likely be held before July, the official said. The Argentine government will offer at least 20 areas, he said.
To contact the reporter on this story: Aibing Guo in Hong Kong at aguo10@bloomberg.net
Oh wait.
(what did you say Chichureo?)
WHY? It's only ten times what FatBoy pocketed after the Aerolineas robbery.
And would YOU invest money getting oil out of the ground when you ”Obnoxious Queen' only pays you U$D 42 / barrel for it when the international price was U$D 100 / barrel.
Oh! I forgot. YOU don't invest your money do you? You live off the backs of people like me and my wife who work all their life in order to support the Scotts layabouts who prize themselves as Old Scottish Labour aka 'The Commies' and the other idle bastards who do nothing but whinge and moan whilst watching the TV, smoking a fag with a beer in their hand.
They are called chav's. Always in the newagents early on a Thursday morning buying their fags and six packs of “wife-beater” Lager.
Call their kids “Mercedes” or “Chardonnay”. They're biggest dream is to get on the “Jeremy Kyle show” and live off benefits for the rest of their lives. Is it me or isn't this all just a little bit sad?
Oh good! More, more, more.
Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!