Repsol wants fair compensation from Argentina; will appeal to all legal resources
Repsol Chairman Antonio Brufau has expressed his determination to reach a solution on compensation for the nationalisation of its shares in YPF, and says that he is willing to take the matter to an international court level to ensure a fair amount is paid.
In his first interview since President Cristina Fernández decreed the appropriation of YPF in April, Brufau told Spanish daily El País on November 17 that he still believes and hopes for an agreement through dialogue “to compensate us for that which belonged to us.”
Repsol sued Argentina in May through a US court as part of an effort to recover more than 10 billion dollars from the country after President Cristina Fernandez seized control of YPF, accusing Repsol of not investing enough and inducing an over reliance on expensive imports.
When asked about his optimism over receiving compensation, Brufau replied: “I am more of a realist; we will use all possible judicial mechanisms if necessary.”
The Repsol CEO also emphasized that the conflict is “not good for Repsol, but even worse for Argentina,” referring to the prospects of direct foreign investment.
Brufau also pointed to the discovery of the Vaca Muerta shale oilfield as the catalyst for the sudden deterioration of relations between Repsol and the government, relations which he described as excellent “up to 2011.”
He said that Repsol would have been willing to discuss Argentine interests in the oilfield, but instead “something so positive became a trigger for nationalisation.”
Brufau also revealed his company would seek arbitration at the World Bank’s International Centre for Settlement of Investment Disputes (ICSID), as the required period of six months has passed from the nationalisation for the ICSID to consider arbitration in the dispute between the two parties.
“We will go to the ICSID when we see best, but we can withdraw the request if an agreement is reached”.
Spain’s Foreign Minister José María García stated last week on Spanish television that there “are conversations between the Argentine and Spanish governments about the matter every single day.”
The interview came as the Ibero-American Summit ended in Cádiz (Spain), with the noticeable absence of President Cristina Fernández, who opted to send Vice-President Amado Boudou in her place.
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41 comments Feed
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What percentage of YPF does Repsol own now? Nothing?
Don't worry, troll shift starts soon, a ProArg incarnation will be able to explain it...
huh...............no they won't......instead, there will be an outpouring of rightous indignation and then they will quickly change the subject.
4 Ayayay
”@3 Ok, Troy. I'll wait. :)” .............. ( tumbleweed rolls by... ) me thinks that you will be waiting for a VERY long time for a sensible answer to that one..................
Repsol owned 57% of YPF when it was expropiated by the government leaving them 6%. They gained a further 6% of shares when the argentine family holding them could not repay the loan Repsol had given them - due to the government stopping dividend payments.
Now nobody will touch YPF with a bargepole.
Ayayay and I were not expecting a serious answer from the Trolls, heaven forbid!!!
Just waiting to see what ridiculous far-fetched load of crap they were going to serve up, to Ayayay's challenge...
:-D
Fortunately Argentina isn't in a position to seize the Falklands, but they may live to regret seizing Repsol in the long-term.
No foreign investor with any brain will touch a country which nationalises foreign owned companies without appropriate compensation (this is basically theft).
Argentina will be worse off in the long term for scaring off foreign investment unfortunately.
Invest in FOGL even if the pickings aren't as rich as in Argentina, you won't be stabbed in the back and you mighty actually make some money as oppossed to losing it.
Repsol thinking that they are going to get fair compensation from Argentina is a pipedream.
With friends like Argentina who needs enemies?
Section 17. - Property may not be violated, and no inhabitant of the Nation can be deprived of it except by virtue of a sentence based on law. Expropriation for reasons of public interest must be authorized by law and previously compensated. Only Congress levies the taxes mentioned in Section 4. No personal service can be requested except by virtue of a law or sentence based on law. Every author or inventor is the exclusive owner of his work, invention, or discovery for the term granted by law. The confiscation of property is hereby abolished forever from the Argentine Criminal Code. No armed body may make requisitions nor demand assistance of any kind.
So we read the second sentence. The argie government breached its own constitution! But then we know that, in argieland, nothing is lawful except what is convenient.
Let us all get down and pray that argieland loses its “frigate” and its broken-down “corvette” and that the US Courts do what is right and force argieland to pay all its creditors.
With luck, December will see argieland out of the IMF and all related organisations. Followed by expulsion from the G20. Membership of those organisations gives argieland too much legitimacy. Perhaps, when argieland has NOTHING, argies (wrigglies) will get the idea that you get what you vote for. Perhaps, in future, they'll invest in some brains!
They must spend more on lawyers that they do on the poor of their country.
They soon won't have the fabled US$45 billion, but the lawyers will! LOL
And what is KFC's proclaimed profession ?
the next junta will get rid of allllllllllllllllllll,,,,,,
at the same time
i hide in my house basement
lol
www.guardian.co.uk/world/2012/nov/19/catalonia-vote-future-spain
The end could be nigh
Repsol have to chase otherwise they will never get anything. And don't forget they are still on the board as they own 12%.
You are right, the funniest poop of all is that at the end of this process there will be no more Spain, or UK.
Argentina will still be flying its flag high from La Quiaca to Ushuaia as both of your countries are historical footnotes.
@18 Only if it puts its dishrag on a tall mountain, probably stolen, before it dies. I'm going to find out whether I can get toilet paper printed with the argie dishrag. Can I send you specimens with the brown stains?
“Repsol have to chase otherwise they will never get anything. And don't forget they are still on the board as they own 12%.”
So wait as I suggested and be happy that they still have 12 %.
Repsol should continue to pile on the misery for Argentina for the blatant theft and with the help of all of the others keep Argentina on its knees.
There is a price to pay for these despicable actions by the current government of Argentina.
You are the evil ones, remember that. The rest of the world that wants always to ferk us over.
@19
Our flag will be flying long after the Union Jack and the Spanish emblema are meaningless of non-existent nations.
Given how rapidly you are declining as nations, that is not really praise of Argentina's potential longevity. hahahahaha
You can't be the aggressor and the victim at the same time.
If you felt such a way, why did your government for the entire decade allocate energy contracts to said company?
Sorry non of this makes any sense and regardless of reason, its still out right theft.
Because we in good faith thought they would explore and develop, but nothing happened. The same in the 90s when the entire economy was privatized on the promise of competition and innovation, and nothing happened. It all became a monopoly with European companies cornering whatever market in phones, water, electric, banks, etc... and we payed the world's highest rates for utilities, gasoline, and others.
Capitalism failed because the capitalists cheated. That's why no one in Argentina believes in it anymore.
Although you did put some rules in place, they were so tragically wrong and misguided they strangled the sector, like fixing energy prices which mean that investment wasn't possible because profits were strangled.
This is the same failure western countries have had with the banking sector and again not the fault of capitalists but the fault of no regulation i.e. 'light touch' the UK employed.
I just mentioned in 28, in the 1990s we had one of the highest rates for many things in the WORLD. That made is one of the world's most expensive countries, not just the high rates, but the fact the currency was fully convertible to (back then) very strong US dollar.
They made so much money then they could have reinvested billions and billions, and now you blame the government for not policing? You would be the first to complain of government intervention? And isn't the “free” market supposed to self-correct excesses by having new people offer lower rates for a product if others charge too much?
Or are you suggesting there is no “self-correction”, if not... that is a big problem because it is a pillar of “free” (from government) markets.
”Or are you suggesting there is no “self-correction”, if not... that is a big problem because it is a pillar of “free” (from government) markets.”
Economies help those who help themselves - grow up!!
I get it - you're bitter that it went to ruin because you expected the unmanaged “free market” to create wealth for you, and it didn't.
How naive are you?
Manage your economy, and be accountable for your own decisions, instead of blaming others.
No wonder ALL the other LATAM countries laugh at you.
Oh, right, you keep telling us you don't care.
Suggestion: learn reading.
I said the companies that took over the national industries and utilities in 1990s made BILLIONS and BILLIONS: by charging the world's highest rates for electricity, gasoline, water, and other things.
They should have had more than enough to reinvest for further sources, they didn't.
Capitalism failed, they fleeced the country and then left. End of story.
Between being fleeced by foreigners and fleeced by CFK, I prefer the latter.
“Between being fleeced by foreigners and fleeced by CFK, I prefer the latter”
Good! Because CFK is doing a bang up job of it - food shortages now!!
“ companies that took over the national industries and utilities in 1990s made BILLIONS and BILLIONS: by charging the world's highest rates for electricity, gasoline, water, and other things.”
Is this your lame excuse for making deals for foreign investment $$$ and expertise, and then taking it all for yourselves without compensation?
Repsol and other investors call you thieves.
“Capitalism failed,”
NO, YOU failed, as I said before.
Suggestion: Learn to put your ideas down clearly and concisely. Much better this time btw :- )
They made no investments and brought no expertise!!!!!
“They made no investments and brought no expertise!!!!!”
YPF with Repsol, as an example?
Argentina has to be accountable, too.
If it was a 'bad' deal, one has to ask why Argentina signed it and agreed to it.
Why did the bond holders all over Europe, North America and elsewhere buy Argentine bonds? If it was such a “bad deal” one has to asked why they bought it.
“ If it was such a “bad deal” one has to asked why they bought it.”
Are you saying that multiple companies that invested hundreds of millions of $$$ in Argentina, in an agreement with the government, actually reneged on the deal?
That is what Argentina did to many many senior citizens and “Mom&Pop” investors,( Italians come to mind) whose retirement investments disappeared, when Argentina screwed them.
Didn't $600m go missing in Santa Cruz, CFK's province, at that time???
Sounds like a lot of money went into somebody's pockets, and it wasn't foreigners' !
Argentina's politicians are their own worst enemy.
Like I said, you need to show some accountability instead of blaming others.
Anyway, time to go - need to walk the dog.
It's not like I'm PAID to be on here, you know :-D
I guess its easy to blame foreigners rather than accept your own shortcomings. That type of mindset and behaviour is a stressful one, because taking a stance like that means you are always out-of-control.
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