Ambassador Argüello explains to the US business community YPF seizure
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.