Thursday, December 6th 2012 - 00:35 UTC

Repsol sues Chevron in New York over development of YPF energy assets

Spain’s Repsol has sued Chevron Corp. in New York seeking to prevent the US oil giant from developing energy assets in Argentina. The federal lawsuit filed Tuesday follows other legal claims that the Spanish oil company has filed in Madrid and Washington, demanding more than 10 billion dollars in compensation for the majority stake in the YPF oil company that Argentina's government took over in April.

The Spanish company accused Chevron of conspiring with Argentina

Respol accused Chevron of conspiring with Argentina to act in violation of the company's bylaws.

Chevron was “willing to partner in Argentina's scheme to deprive Repsol of its rightful interest in the energy assets, so long as Chevron received an interest in energy assets for itself,” Repsol alleged in the lawsuit.

Repsol asked a judge to prevent Chevron from partnering with YPF in developing Argentina's energy assets, as long as government officials are managing the company. The lawsuit also asks for compensatory damages to be determined at trial.

The lawsuit comes a day after Repsol filed a complaint against Argentina at the World Bank's international arbitration forum over the asset seizure.

“Chevron's willingness to capitalize on Argentina's expropriation of Repsol's major interest in YPF is in stark contrast with that of other major players in the oil and gas industry,” the lawsuit said, citing disapproving comments from the chief executive of France's Total.

Chevron maintains there is no legal basis for the NY lawsuit, and stands by a memorandum of understanding it signed with Argentina to evaluate energy sites for development, spokesman James Craig wrote in an email.

Chevron has had a collaborative relationship with YPF since the early 1990s. The companies agreed in September to jointly develop Argentina's shale reserves the world's third largest after the US and China. Repsol says those reserves in the “Vaca Muerta” shale basin were discovered while it ran the company, so it deserves to be paid for them.

YPF needs billions of dollars to go after unconventional oil and natural gas like that, but major oil companies have held back from investing, in part, analysts say, because of Repsol's legal threats to sue any international oil company that tries to partner with YPF. Chevron has declined to say how much it will spend on the YPF effort

The lawsuit adds to a handful of high-profile legal battles for Chevron in South America, including its year-long tussle in Brazil following an offshore spill there and a two-decade international fight over rainforest pollution in Ecuador.

The case is Repsol SA v. Chevron Corp in U.S. District Court, Southern District of New York, No. 12-cv-8799.

35 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 Nostrolldamus The 2nd (#) Dec 06th, 2012 - 12:46 am Report abuse
Long live capitalism, look how these oil companies are all stabbing each other just to get at the massive oil reserves Argentina has.

stupid pigs.
2 Captain Poppy (#) Dec 06th, 2012 - 02:15 am Report abuse
you commies just do not understand how competition works, that is why you resort to stealing entities. The shale will never get out until the cunt pays Repsol.

you stupid south american pig
3 reality check (#) Dec 06th, 2012 - 06:22 am Report abuse
Hey Guzz
EEzz the Argentinian way of doung things, Wassa matta you!!!
4 Optimus_Princeps (#) Dec 06th, 2012 - 11:52 am Report abuse
Capitalism is the most natural system of economics that exists today.

Oil companies unfortunately have been using their clout to create situations that work in their favor to an unnatural degree. They generate liabilities for the countries they do business with, and their clients.

The problem is that oil companies haven't been letting the economy breathe. People should be able to choose alternatives, but their friends in the government pass laws to create restrictions to prevent oil companies from losing market share. That's unnatural.

The socialist model requires more controls that are much more dangerous. Instead of large corporations, and legislators interfering; you have much more malignant forces that impose their “ideals” which often have catastrophic effects, like inflation. It's the same issue, just someone else's hand in the cookie jar.

The economy can self regulate if given the right proportion of freedom and regulations. A new law must be scrutinized with precaution, because it could upset the balance.
5 DanyBerger (#) Dec 06th, 2012 - 11:59 am Report abuse
Don't worry Spanish they are always goods “Judge Thomas FranBuesa” available out there in US. The rest is just like your imagination...
6 Captain Poppy (#) Dec 06th, 2012 - 12:55 pm Report abuse
#4 I totally agree with you last paragraph. There is no “pure” or “true” capitalism anyway. It's up to the government to right the proper balance between enough regulation to prevent runaway corporations and not too much to stifle them from providing investments, goods and jobs.
7 Condorito (#) Dec 06th, 2012 - 12:59 pm Report abuse
Nice post.
8 yankeeboy (#) Dec 06th, 2012 - 01:18 pm Report abuse
Repsol will sue every oil company that tries to do business with YPF.
All they have to do is make it difficult and expensive to do business with Argentina for this to work.
The game they are playing is delay delay delay and frustrate any new $ coming in for exploration.
Repsol will win.
It is just a matter of time
They can outlast CFK
I hear there is another protest this month
Do the provinces have the $ for the 13th payment in Dec?
I bet not
9 Conqueror (#) Dec 06th, 2012 - 02:45 pm Report abuse
Wonder how many more court cases argieland is going to cause or get involved in. There's 65 recorded at the WTO, 49 at the ICSID, 3 (that I know of) in the US, 1 in Ghana. Clearly a pariah, rogue state.
10 Nostrolldamus The 2nd (#) Dec 06th, 2012 - 02:50 pm Report abuse

Nope, a state that has called you out as the pathetic, thieving, hypocrite, cheating, mendacious, fibbing, prevaricating, uncoth, loutish, doltish, paltering, countries you are.

Just because you control the UN and all other organizations and they write “glowing” reports about you (all lies of course... who would believe North Korean TV's accounts of their leader for example), doesn't make them true.

These “reports” on corruption, human rights, etc, are all paid-off by the northern nations, and worth no more than a North Korean tv anchor's news script.
11 yankeeboy (#) Dec 06th, 2012 - 02:57 pm Report abuse
I think it is hilarious that a tanker full of burning pesticides is not considered a health hazard in BA!

CFK has Goebbels beat by a mile!
12 Captain Poppy (#) Dec 06th, 2012 - 03:35 pm Report abuse
Some of my friendfs have been evacuated down by Puerto Maduro
13 yankeeboy (#) Dec 06th, 2012 - 03:37 pm Report abuse
Yeah my FB friends are complaining about it.

I guess it stinks although with all the rotting garbage not being picked up I wonder how one could tell?
14 Shed-time (#) Dec 06th, 2012 - 04:28 pm Report abuse
I'd imagine the whole boat burning exercise is planned to coincide with some anti-kirchner event on 7th December or to redirect attention away from her creating an edict to let her offshore another $2bil from the central bank to her personal wealth fund.

La campora brown shirts, eh? predictable to the last.
15 Welsh Wizard (#) Dec 06th, 2012 - 04:57 pm Report abuse
@8 yankeeboy

I think i read that monetary base increased another 36%. I suppose that this will pay off the bonus payments...?
16 yankeeboy (#) Dec 06th, 2012 - 05:10 pm Report abuse
15. Monetary base might be up but the “legally required” tax x-fer payments have not been making their way back to the Provinces.

There lies the rub
17 ProRG_American (#) Dec 06th, 2012 - 05:25 pm Report abuse
Don't waste your time. In the end, the full power and influence of the U.S. Government will not allow Repsol to win this one against Chevron.
18 Simon68 (#) Dec 06th, 2012 - 05:28 pm Report abuse
17 ProRG_American (#)
Dec 06th, 2012 - 05:25 pm

Just like “the full power and influence of the U.S. Government will not allow” Ecuador to win this one against Chevron.

Do you think so??????
19 Welsh Wizard (#) Dec 06th, 2012 - 05:41 pm Report abuse
@16 yankeeboy

Didn't know that, interesting. I suppose central government needs all the cash they can get their hands on. Isn't tomorrow the day that Clarin has to break-up its empire?
20 yankeeboy (#) Dec 06th, 2012 - 06:01 pm Report abuse
19. The Provinces have had to shut down, postpone and cancel a lot of projects. Arg was fined by the IDB for using infrastructure loans for other purposes (rut ro).

Many Provinces have delayed payments to suppliers and offered a lottery to pay current salaries. They're out of scratch even though the printing presses are turning out 100 pesos notes just about as fast as they can.

They will either force CFK to x-fer the $ for the 13th payment or issue script. Either way nothing is going to stop this train from crashing.
21 Captain Poppy (#) Dec 06th, 2012 - 06:06 pm Report abuse
#17 you need to put an s infront of the American.......of at least id yourself as a transplanted American, assuming you are legal.
22 Ayayay (#) Dec 06th, 2012 - 07:44 pm Report abuse
Haha I guess Denmark, Finland and New Zealand aren't highly ethically run countries for their citizens because a Mendozan who calls himself troll said so.

Meanwhile, I saw under-the-gov stuff when I was in Arg. Diiiidn't want to.

It's nice to live among a people who treat you honestly and well.
23 Xect (#) Dec 06th, 2012 - 09:08 pm Report abuse
What you are missing ProRG or should I just say RG is Repsol are not really trying to win too many cases but make it impossible/extremely expensive for oil companies to partner with Argentina and its working very well.

What happened to the Chinese/Russian investments? What happened to all of these companies supposed to be investing in Argentina? Only Chevron has stuck its toe in the water and is about to have an expensive court case that will delay production massively and that is if it can win.

As Simon correctly said American isn't using its influence and power to change anything given the recent judgements and Amercia's very strong anti-Argentine stance. Given Argentina is the USA sh!t list, its clearly not going to help Argentina.

Argentina burnt its bridges with the USA a while ago.
24 ElaineB (#) Dec 06th, 2012 - 09:25 pm Report abuse
@19 Yes and this was reported today,

The Judiciary asks government to avoid ‘pressure on judges’

Justice Minister Julio Alak.
Judiciary power asked today the national government to “exercise its faculties within the boundaries of the procedural rules and avoid using direct or indirect mechanisms to pressure judges thus affecting their independence”, in a communiqué released today after judges designated to rule the Media Law reported their independence was being attacked by the Executive branch.

Can you imagine the pressure the government is putting on the judges to force the demise of Clarin? All to satisfy a personal vendetta of CFKC.

I mentioned before that there was a very interesting article in the New York Times about it. Clarin had a rather cosy relationship with Nestor but since power went to CFKC's head, she is all about her personal agenda, rather than what is right for the country.
25 Optimus_Princeps (#) Dec 06th, 2012 - 10:43 pm Report abuse
It's called a system of checks and balances for a reason. I would like to see it work at least once. It would be sad for the Judiciary branch to give in to the childish whims of a petty tyrant.

It seems like the country is being run by greedy little kids.
26 Shed-time (#) Dec 06th, 2012 - 11:01 pm Report abuse
Argentinian independence of the judiciary is oxymoronic.
27 Captain Poppy (#) Dec 07th, 2012 - 01:03 am Report abuse
#17 you RGs just do not understand how our system works.

The Judiciary did extend the stay. The botox queen must be IVing her meds tonight.
28 Troy Tempest (#) Dec 07th, 2012 - 01:06 am Report abuse
@25 Optimus

“... a system of checks and balances”

In Argentina, cheques and bank balances
29 reality check (#) Dec 07th, 2012 - 10:10 am Report abuse
Hey Christina and you trolls,
Democracy 101.
30 Simon68 (#) Dec 07th, 2012 - 02:04 pm Report abuse
Well done our Judiciary, first step on the road to REAL Democray!!!!!!
31 Pugol-H (#) Dec 07th, 2012 - 06:11 pm Report abuse
I wonder how much of Chevron’s interest in YPF is genuine given the obvious difficulties involved, and how much is simply to give them leverage against any attempts by Equador to seize their existing assets in Argentina.
32 toxictaxitrader2 (#) Dec 08th, 2012 - 10:29 am Report abuse
31 Pugol-H(#)
You hit that one on the head Boyo! well said
33 Pete Bog (#) Dec 09th, 2012 - 10:22 pm Report abuse
”Wonder how many more court cases argieland is going to cause or get involved in. There's 65 recorded at the WTO, 49 at the ICSID, 3 (that I know of) in the US, 1 in Ghana. Clearly a pariah, rogue state.”

Lol-still waiting for all these RG court cases against oil companies investing in/exploring Falkland waters-not seen one yet in 9 months.
34 British_Kirchnerist (#) Dec 14th, 2012 - 09:29 pm Report abuse
Chevron sued for colluding with socialism in Argentina, while crying persecution in Ecuador, you couldn't make it up =)
35 Captain Poppy (#) Dec 15th, 2012 - 03:08 am Report abuse
BK you should be a Hollywood publicist, you know how to reshape and simplify reality

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!