Tuesday, November 20th 2012 - 00:46 UTC

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.

“They must compensate us for that which belonged to us” says Repsol CEO Brufau

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.
 

41 comments Feed

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1 bushpilot (#) Nov 20th, 2012 - 12:58 am Report abuse
What percentage of YPF did Repsol own when it was appropriated by the Argentine Government?

What percentage of YPF does Repsol own now? Nothing?
2 Ayayay (#) Nov 20th, 2012 - 01:08 am Report abuse
I can see taking back the oil rights 'for the people' but didn't take the computers, the carpets, the tools?
3 Troy Tempest (#) Nov 20th, 2012 - 04:08 am Report abuse
@02 Aya
Don't worry, troll shift starts soon, a ProArg incarnation will be able to explain it...
4 Ayayay (#) Nov 20th, 2012 - 05:27 am Report abuse
@3 Ok, Troy. I'll wait. :)
5 toooldtodieyoung (#) Nov 20th, 2012 - 07:14 am Report abuse
3 Troy Tempest

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..................
6 Spainexpat (#) Nov 20th, 2012 - 07:51 am Report abuse
@ 1 Bush Pilot

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.
7 toxictaxitrader2 (#) Nov 20th, 2012 - 07:51 am Report abuse
Argentina! every time a lawyer reads that word he rejoices
8 Troy Tempest (#) Nov 20th, 2012 - 08:33 am Report abuse
@5 too old

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
9 jaydub (#) Nov 20th, 2012 - 10:00 am Report abuse
Why is it that Argentina seems to have a sense of entitlement regarding things that don't belong to it? Repsol and the Falkland Islands being the two most obvious recent examples which spring to mind.

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.
10 Pete Bog (#) Nov 20th, 2012 - 11:41 am Report abuse
Repsol, engage brain and realise like many others, if you invest in Argentina you're going to be robbed.

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?
11 Conqueror (#) Nov 20th, 2012 - 03:30 pm Report abuse
Ah hah! A lovely example of argieland failing to comply with its own law. In the 1994 Constitution, it says:

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!
12 LEPRecon (#) Nov 20th, 2012 - 03:41 pm Report abuse
I wonder what Argentina's legal costs are?

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
13 agent999 (#) Nov 20th, 2012 - 04:42 pm Report abuse
@12
And what is KFC's proclaimed profession ?
14 Briton likes Juntas (#) Nov 20th, 2012 - 04:46 pm Report abuse
nooooooooooooooooo brothers,,,,,,
the next junta will get rid of allllllllllllllllllll,,,,,,
at the same time
i hide in my house basement
lol
15 Idlehands (#) Nov 20th, 2012 - 04:51 pm Report abuse
Spain has more to wory about than YPF:

www.guardian.co.uk/world/2012/nov/19/catalonia-vote-future-spain

The end could be nigh
16 ProRG_American (#) Nov 20th, 2012 - 06:07 pm Report abuse
The longer Repsol continues to intervene in YPF assairs the longer it will take for them to get paid.
17 Spainexpat (#) Nov 20th, 2012 - 06:26 pm Report abuse
@16 ProRG

Repsol have to chase otherwise they will never get anything. And don't forget they are still on the board as they own 12%.
18 Nostrolldamus The 2nd (#) Nov 20th, 2012 - 06:29 pm Report abuse
@15

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.
19 Conqueror (#) Nov 20th, 2012 - 06:55 pm Report abuse
@16 Ah. Impotent threats.
@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?
20 agentscrewed (#) Nov 20th, 2012 - 08:21 pm Report abuse
yes i collected your semen from the your condom
21 Kameron de gallina (#) Nov 20th, 2012 - 09:35 pm
Comment removed by the editor.
22 ProRG_American (#) Nov 20th, 2012 - 09:53 pm Report abuse
17 Spainexpat (#)
“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 %.
23 Xect (#) Nov 20th, 2012 - 11:03 pm Report abuse
Ah I see ProRG, so you are suggesting theft is acceptable then.

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.
24 Nostrolldamus The 2nd (#) Nov 20th, 2012 - 11:10 pm Report abuse
@23

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
25 Xect (#) Nov 20th, 2012 - 11:20 pm Report abuse
Ah the victim mentality, nothing to do with your government stealing a company then?

You can't be the aggressor and the victim at the same time.
26 Nostrolldamus The 2nd (#) Nov 20th, 2012 - 11:30 pm Report abuse
But sometimes you can be an aggressor as a reaction to decades of trying to be farked by the rest of you.
27 Xect (#) Nov 20th, 2012 - 11:33 pm Report abuse
By the rest of you, I presume you mean your mother country Spain.

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.
28 Nostrolldamus The 2nd (#) Nov 20th, 2012 - 11:38 pm Report abuse
Well in this case, yes, Spain.

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.
29 Xect (#) Nov 20th, 2012 - 11:46 pm Report abuse
This is nobodies fault but Argentina's if you haven't had the correct bodies to police energy companies in your country then it is your fault, not the fault of capitalists.

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.
30 Nostrolldamus The 2nd (#) Nov 20th, 2012 - 11:50 pm Report abuse
@29

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.
31 Troy Tempest (#) Nov 21st, 2012 - 01:42 am Report abuse
@30 Nostril

”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!!
32 Nostrolldamus The 2nd (#) Nov 21st, 2012 - 01:59 am Report abuse
that is the poorest and glib response ever. Which means you have no plausible retort to my statements.
33 Troy Tempest (#) Nov 21st, 2012 - 02:40 am Report abuse
You said you had an economy worth “billions and billions” and now it's in the shitter.
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.
34 Nostrolldamus The 2nd (#) Nov 21st, 2012 - 02:56 am Report abuse
@33

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.
35 Troy Tempest (#) Nov 21st, 2012 - 03:42 am Report abuse
@34 Nostril

“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 :- )
36 Nostrolldamus The 2nd (#) Nov 21st, 2012 - 03:51 am Report abuse
“Is this your lame excuse for making deals for foreign investment $$$ and expertise”

They made no investments and brought no expertise!!!!!
37 Troy Tempest (#) Nov 21st, 2012 - 03:56 am Report abuse
@36 Troll

“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.
38 Nostrolldamus The 2nd (#) Nov 21st, 2012 - 04:05 am Report abuse
You must be stupid.

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.
39 Troy Tempest (#) Nov 21st, 2012 - 04:21 am Report abuse
@38Trol doofus

“ 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
40 Xect (#) Nov 21st, 2012 - 07:51 am Report abuse
@Nostrollamus the 2nd - There's a strong lack of taking responsibility in this one.

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.
41 British_Kirchnerist (#) Nov 24th, 2012 - 02:02 am Report abuse
First interview since April it say; wow, he really is piling the pressure on Cristina!

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