MercoPress. South Atlantic News Agency

Repsol-YPF privileges Argentina over Bolivia

Repsol-YPF has plans to speed up the investment program in Argentina to help compensate losses in Bolivia, announced Friday the company's CEO Antonio Brufau in Madrid.

"We're not actually going to increase overall investment in Argentina but rather anticipate those we have planned for the 2010/2015 period in an attempt to mitigate the impact of the company's activities in Bolivia", said Mr. Brufau during a press meeting previous to Repsol-YPF annual shareholders general assembly in Madrid.

"Anticipating investments is not easy because you must have available resources", and the company still has to decide "which is the best strategy to accelerate the program", admitted Brufau.

The issue will be considered next Monday in the oil company's headquarters, two days before Argentina's president Nestor Kichner visit to Madrid when he is scheduled to meet with the CEO of Spain's leading corporations with interests in Argentina.

Repsol acquired Argentina's YPF in 1999 with a price tag of 15 billion US dollars, the President Carlos Menem administration largest privatization operation.

Last December Mr. Brufau announced the company would be investing 6.7 billion US dollars in Argentina between 2005 and 2009.

"We have on the table a long list of issues to address to help overcome the problem generated by the delay in developing resources in Bolivia's oil and gas fields".

Repsol-YPF is one of the oil corporations hardest hit by Bolivia's nationalization policy announced last May by Bolivian president Evo Morales, who gave companies six months to renegotiate standing contracts following the new guidelines emphasizing government property of resources.

Through its affiliate Andina Repsol-YPF controls 25.7% of natural gas production in Bolivia which has the largest reserves in South America behind Venezuela.