Tuesday, November 20th 2012 - 01:36 UTC

Repsol presses charges against Chevron for making business with nationalized YPF

Spanish oil company Repsol has pressed charges against Chevron over “disloyal competition”, after the US company reached an agreement with its former Argentine branch YPF to conduct explorations in the Vaca Muerta reservoir, a company spokesman announced.

YPF is having trouble attracting foreign investors and its market value has collapsed

A Madrid court has accepted the case, which complements the one started in September by Repsol against YPF after it was expropriated by the Cristina Fernández administration.

“These charges are now part of the lawsuit started against YPF over disloyal competition due to the understanding agreement signed between YPF and Chevron” last September in order to explore the Vaca Muerta reservoir, the spokesman said.
Repsol had already threatened to take legal action against anyone who invested in YPF or its assets, which according to the Spanish company, were expropriated illegally.

“We will continue to pursue legal action in order to protect our interests,” he said.

Last May, President Cristina Fernández announced she had decided to nationalize a 51% of YPF stocks, part of the 57,5% that belonged to the Spanish group.

Meanwhile in Buenos Aires sources said that YPF and Chevron officials will attempt to move forward this week on a proposal to jointly develop the shale oil and gas deposits, while technical teams will convene in Houston to study the recovery of oil from aging wells through new technologies and partnerships to tap the Vaca Muerta shale formation.

Vaca Muerta contains at least 23 billion barrels of oil. YPF is seeking a shale partner to invest 4.5 billion dollars as part of a 37.2 billion five- year expansion.

Argentina wants Chevron to step up investments as the US company battles a court embargo on its existing assets in the country. On Nov. 7, Civil Judge Adrian Elcuj Miranda ordered 40% of Chevron’s Argentine bank accounts to be held in escrow after receiving a petition from Ecuadorian plaintiffs seeking to enforce a 19 billion dollars award in that country.

YPF is having difficulties to attract new investors and so far this year the market value of the company dropped to 4.4 billion dollars with an annual value loss of 70%, which makes it equivalent to what the Argentine nationalized company was worth ten years ago.

A year ago when the company was fully under Repsol control, the value of the company was 13.5bn dollars, while in 2008 when the global crisis it stood at 16.8bn, and the historic value was back in 2005 when it had soared to 28bn dollars.

In January 2012 the YPF share stood at 41.47 dollars, but since the beginning of the intense rumours of nationalization, as finally happened in April, the stock started to slide sustainedly. On 16 April when Cristina Fernandez announced she was taking over 51% of the company’s stock from Repsol, the value of the company was 7.9bn dollars (a share traded at 19.50 US dollars). November this year the company’s worth was down to 4.4bn dollars.

14 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.

1 Ayayay (#) Nov 20th, 2012 - 02:07 am Report abuse
2 Usurping Pirate (#) Nov 20th, 2012 - 08:37 am Report abuse
An annual loss of 70% for YPF, with the company worth 1/3rd of what it was under Repsol .
This was predicted by most non RG posters on here .
Maybe Argentina needs a nuclear def.... no , let's not go there .
3 Idlehands (#) Nov 20th, 2012 - 09:47 am Report abuse
Having spent months taking action to force down the share price I imagine CFK will want to pay the share price on the day of the nationalisation less a randomly picked figure plucked from the air as way of compenstion to Argentina.

It doesn't work like that. For a shart a 51% share in a company is worth more than 51% of the total share price because it is a controlling interest.

Repsol will want the fair value of a controlling interest prior to her efforts at price manipulation. CFK won't want to pay anything and will draw out the legal process for as long as possible - probably so nothing is paid during her presidency.
4 JuanGabriel (#) Nov 20th, 2012 - 10:49 am Report abuse
“Argentina wants Chevron to step up investments as the US company battles a court embargo on its existing assets in the country”

Trying to work out Argentina's strategy here - are they going for the blackmail Chevron into investing in Vaca Muerta otherwise they will seize all their other assets in country?

When the crunch comes surely they (Chevron) realise they will be in danger of losing both the current investments and the new ones.
5 yankeeboy (#) Nov 20th, 2012 - 12:55 pm Report abuse
The nice thing about the YPF/Repsol fight is that YPF is a“private” company with assets to seize. Once Repsol wins the judgement they can jsut start taking the oil from the tankers and anything else they can find outside of Argentina.
6 Captain Poppy (#) Nov 20th, 2012 - 02:34 pm Report abuse
Taking oil from a tanker can prove to be difficult. They have to do it in port from a country that will abide by the ruling. If they treid that in open waters with a non Argentine flagged vessel that can come under the heading of piracy. Where is YPF getting their crude imported from? I recall at one point they were contracting with British shippers, ironic huh?
7 yankeeboy (#) Nov 20th, 2012 - 02:43 pm Report abuse
I didn't mean to suggest it would board tankers at sea but in Port prior to delivery would work. Tie up a couple tankers in the ports for a few weeks it would certainly put a dent in their oil trade as they find it harder and harder to locate a tanker willing to take the risk it will be detained. for an undetermined amount of time.
They probably wouldn't even have to take the oil just make it very hard and expensive to ship it.
Monsanto did that with Soy a few years ago until Arg backed down and signed a new contract.
8 Captain Poppy (#) Nov 20th, 2012 - 03:28 pm Report abuse
Once that begins, the shippers may not even want to get involved with the headaches of dealing with YPF. That alone may cause is shipping decrease in oil imports. However I suspect that the devil himslef, chubby chavo is supplying oil to Argentina.
Chances are the YPF s importing via Petrobas Argentina and consumating the deal when it arrives.
9 yankeeboy (#) Nov 20th, 2012 - 03:31 pm Report abuse
8. They don't have refining capacity that is why they have to export it. It would be easier to take the ships when they are delivering to another country.
10 jkw (#) Nov 20th, 2012 - 03:41 pm Report abuse
I'm pretty sure that Chevron has matured and has learned that in Argentina, instead of working against populism under a model of predatory capitalism, working with it under a model of mutual reward capitalism will make it a more palatable partner than Repsol whose principals close their doors and scream and beat their fists into the walls at the thought of peons and former slaves, telling them, the Spanish aristocracy, what to do
11 Captain Poppy (#) Nov 20th, 2012 - 06:16 pm Report abuse
!!....suzzie you are right shit on comments like #10

Yankee, I didn't realize that. That is exactly like Venzuela. They hate us Americans but lack refining capacity. 40% of their gasoline is imported the the evil empire they so hate, the USA......lol. However as the price continued to rise, it was and is getting difficult for chubby to maintain the lower prices and the people were getting angry. See what happens when the lazy are given a hand out as opposed to a hand up?
12 ProRG_American (#) Nov 21st, 2012 - 11:19 pm Report abuse
Madrid court. Does not hold water.
I bet thatthat the Brit trolls will be burning the midnite oil on justifying this action while denying Spain has no right to claim Gibraltar.
Fools and hypocrits...LOL.
13 British_Kirchnerist (#) Nov 24th, 2012 - 12:52 am Report abuse
Capitalist sues rival capitalist for profiteering....from socialism! You couldn't make it up =)
14 Captain Poppy (#) Nov 24th, 2012 - 02:32 pm Report abuse
You are imbedded too far as a commie to understand. You need a 7.62 mm steel jacket sitting in you cerebellum

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


Get Email News Reports!

Get our news right on your inbox.
Subscribe Now!