Friday, November 30th 2012 - 08:40 UTC

YPF takes over Argentina’s main gas distribution company belonging to BG

Argentina’s nationalized oil and gas company YPF announced it has taken control of Metrogas, after acquiring 54.67% of the shares of Gas Argentino (GASA) from the company British Gas (BG). The takeover leaves the oil company as the main stockholder and controller of 70% of the largest gas distribution company in Argentina.

Metrogas clients number over 2 million concentrated in Buenos Aires

The official release states that YPF’s decision has as its main purpose making Metrogas “a more efficient and profitable company, taking control for the first time of one of the gas distribution companies most attractive in Latin America with over 2 million clients“ in and around the capital Buenos Aires. However the company did not say how much it paid for the shares.

The final approval of the operation will be responsibility of Enargas and the Argentine Defence Competition National Committee.

Meanwhile, the firm presents a difficult economic situation and registered losses in the first semester of the year, reaching 55.7 million Pesos, 214.3% higher than the one reached in the same period in 2011. Metrogas has been suffering financial problems due to a ratef freeze imposed a decade ago at the height of an economic crisis. In September, it said it was struggling to pay providers

In mid 2010 when Metrogras was accumulating short and long term debts to the tune of 200 million dollars, the company requested to come under administration, and since then has been under the intervention of the Argentine natural gas regulador.

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1 Idlehands (#) Nov 30th, 2012 - 09:13 am Report abuse
“YPF’s decision has as its main purpose making Metrogas “a more efficient and profitable company”

Who believes YPF will make it more profitable than it was under BP???
It will be forced to supply cheap energy to Argentina until it is run into the ground.
2 ChrisR (#) Nov 30th, 2012 - 10:54 am Report abuse
AND, they have put the wellhead price of gas up by 44% to 'attract' investors!

Ha, ha, ha. Deluded idiots.
3 ptolemy (#) Nov 30th, 2012 - 11:56 am Report abuse
Usual business: run company into ground; say they are inefficient; nationalize.
4 Huntsman Extraordinaire (#) Nov 30th, 2012 - 11:59 am Report abuse
Did they steal or buy these shares from British Gas - Thats all I want to know!
5 Trunce (#) Nov 30th, 2012 - 12:36 pm Report abuse
Maybe are share swap for this?
6 Huntsman Extraordinaire (#) Nov 30th, 2012 - 12:44 pm Report abuse
LOL! So lets get this straight... The Argentinian Government has made various complaints about the FIG giving licenses to explore for oil in 'disbuted' waters and they are now going to use British Gas to apply for a license from the FIG so that they can explore for oil under the FIG and assumably paying all relevant taxes to the FIG...


I thought that maybe they had nationalised the BG stakes and thats why they were refusing to comment on the prices, or that BG were getting out before it was nationalised.

Absolutely mental...
7 Pirate Love (#) Nov 30th, 2012 - 01:07 pm Report abuse
well argentina clearly had money, so why the stay in avoiding default if they can go out and buy shares with the same money the very next day, its a bit of a slap in the face for the courts.
8 Trunce (#) Nov 30th, 2012 - 01:15 pm Report abuse
“The country’s foreign minister Hector Timerman said it would pursue legal action against firms exploring around the islands - and any other companies who do business with them”

Curiouser and Curioser....
9 Captain Poppy (#) Nov 30th, 2012 - 02:25 pm Report abuse
What country will pay respect to argentina's judiciary when in fact argentina pays no respect to any other countries' judiciary?
10 Idlehands (#) Nov 30th, 2012 - 02:29 pm Report abuse
I think BG need to be very careful getting too close to YPF. They should avoid leaving any onshore assets.
11 Huntsman Extraordinaire (#) Nov 30th, 2012 - 02:41 pm Report abuse
MercoPress 1st December edition:

Argentinian Government seizes British Gas assets and sues state owned YPF.
12 Idlehands (#) Nov 30th, 2012 - 02:56 pm Report abuse
An interesting article re the holdouts. Some new details and the last paragraph is interesting:

I know this is the wrong thread but for some reason I can only post on a couple of stories at the moment. Rather odd.
13 Captain Poppy (#) Nov 30th, 2012 - 03:05 pm Report abuse
I found interesting that Dilma stated she was happy that argentina is open to working with the non restructured bondholders.
14 ptolemy (#) Nov 30th, 2012 - 03:20 pm Report abuse
one scary pic!
15 Trunce (#) Nov 30th, 2012 - 03:41 pm Report abuse

Yes interesting - also penultimate paragraph.
“Miguel Kiguel, an economist, said talk of lifting the lock law was ”obviously coming a bit late. . . They only did it now because they´re on the ropes”.

Relating to joint enterprise with British Gas - maybe Argentina do not have high expectations for forthcoming adjudication of UN CLCS?
16 Anbar (#) Nov 30th, 2012 - 04:35 pm Report abuse
One wonders why Argentina did not simply take the shares without paying...erm... nationalise them.... could it be that they somehow need the British expertise...whereas they didnt the Spanish YPF?

or were they scared of the consequences of going up against the Brits, which they werent with the Spanish? (legally speaking)

Any rational Argentine who can possibly explain this: opinions appreciated as this seems rather confusing a decision/agreement/business arrangement.
17 Idlehands (#) Nov 30th, 2012 - 04:54 pm Report abuse
16 Anbar

We need more info to judge. I must admit I'm amazed by the YPF/BG joint venture article. Doesn't that go against everything CFK has ever said about her approach to the Falklands?
18 Teaboy2 (#) Nov 30th, 2012 - 06:27 pm Report abuse
Yeah is CFK going to take legal action against YPF!!!! LOLLLLL
19 agent999 (#) Nov 30th, 2012 - 06:32 pm Report abuse
We are talking of YPF buying additional shares in Metrogas from the BG Group PLC. (For approx 20 million), in order to gain a controlling interest in Metrogas.
YPF had an option until the end of November the purchase remaining shares in local consortium Gas Argentino, BG Group

MetroGAS S.A. distributes gas to Buenos Aires and southern and eastern greater metropolitan Buenos Aires, so as such has no interest in exploration of oil/gas.

The PR newswire announcement is a bit strange, Howard William Dalton holds the position of “Executive Director”, this was announced 29/11/95
20 Ayayay (#) Nov 30th, 2012 - 06:34 pm Report abuse
Wow, and no cash given for taking over YPF in the first place. Does tbis say trustworthy &reliable?
21 British_Kirchnerist (#) Nov 30th, 2012 - 09:39 pm Report abuse
Great news, and more nationalisations to come I hope =) Viva Reina Cristinita!
22 ptolemy (#) Nov 30th, 2012 - 10:04 pm Report abuse
Why don't nationalize this:
Oh wait, that would fall under land reform right?
23 Brasileiro (#) Nov 30th, 2012 - 10:37 pm Report abuse
We are fire and gas!!
24 Anbar (#) Nov 30th, 2012 - 11:51 pm Report abuse
@ British_Kirchnerist
/random platitude
25 Captain Poppy (#) Dec 01st, 2012 - 01:13 am Report abuse
yeah bk bitch of kirchner is a better sound. More nationalizations and they can be like the USSR
26 Troy Tempest (#) Dec 01st, 2012 - 06:30 am Report abuse
@25 POppy
“like the USSR” or pretty soon, North Korea.
27 Captain Poppy (#) Dec 01st, 2012 - 03:59 pm Report abuse
She is not a peronist.....she is really a communist. I feel for the good people of argentina because once those borders and visa are shut down, it's over
28 Anbar (#) Dec 01st, 2012 - 06:08 pm Report abuse
Still no explanation form the Usual Suspects huh?

Must have the whole office confused... (all 3 of them!) :-0
29 Captain Poppy (#) Dec 01st, 2012 - 09:03 pm Report abuse
they are re-grouping in the west wing at the pink house

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