MercoPress. South Atlantic News Agency
Ambassador Argüello explains to the US business community YPF seizure
Ambassador Argüello: conflict of interests between YPF shareholders and Argentine development goals Argentina explained that the YPF seizure was carried out “in order to avoid an energy crisis” in an article which was published in the US edition of The Financial Times newspaper and signed by Ambassador Jorge Argüello.
“We implemented these measures to avoid a national energy crisis: the dependence on costly imports of energy due to the lack of investment in new oilfields by Repsol. Had we not taken this measure, we would have broken our promise to the Argentines of doing everything in our power to keep self-sufficiency in energy, which is essential for our economic growth and competitivity,” Arguello stated.
“Our economy has grown considerably since 2003, and has done so at levels similar to those of India and China and leads the region along with Brazil. Poverty has decreased and the job rate has soared. However, ever since Repsol bought YPF, oil production fell by 54%”. Arguello also stressed the fact that “the conflict of interests between YPF major shareholder- Spanish oil giant Repsol- and Argentine development goals was an important point of discussion”
“While YPF net profits between 1997 and 2011 stood at 16.6 billion dollars, 14.2 were allotted to investors as dividends, and during the same time period, Argentina’s new oil fields were not explored”.
“As a result, in 2011 and for the first time in two decades, Argentina had a trade deficit in fuel. Argentina was the only Latin American country without control of this strategic resource, which plays an essential role in our economic development. ”The obligation of YPF is to reorient its goals to serve the interests of our country and its citizens, not only to its private shareholders.
”YPF will continue to be a company with private participation and Argentina is open to foreign investments in the company, as long as investment leads to the expansion of oil and gas production and not only for the transfer of profit to pay dividends,” he concluded.
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Read all commentsHe fails to mention that it was the Argentine governments insistence on a price cap on fuel for the domestic market that tied YPFs hands and made their profits tiny.
May 27th, 2012 - 07:25 am 0He also fails to mention why the Argentine government only nationalised the foreign owned parts of YPF, and not those parts owned by private Argentine investors.
And finally he also fails to mention that the seizure was illegal according the their own constitution, which they then had to change to make it legal, and then applied it retrospectively.
He really must think the US business community are stupid. However, you don't get to be a successful business man or woman by being stupid or frivolous with your money.
If Mr Arguello believes that this letter will encourage businesses from North America (especially the US) to invest in Argentina, he must be more deluded than I thought.
No way, next you'll be telling us your not forcing the Big Mac prices lower!!!!
May 27th, 2012 - 08:23 am 0Amigo matero
May 27th, 2012 - 08:25 am 0Between you and me, if we are to pay for what we get, the Big Mac should come with a few quids at delievery :)
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