MercoPress. South Atlantic News Agency

Spain’s Repsol only interested in selling minority stake in YPF

China’s National Petroleum Corporation is after the former Argentine government corporation

Spain's main oil company Repsol is not interested in selling more than a minority stake in its Argentine YPF unit, despite a report it had a new Chinese bid on the table for a majority holding.

The Spanish oil major, reported to be under shareholder pressure to cut back investments after a big drop in earnings, has received a renewed 14 billion US dollars offer for over 50% of YPF, in which Repsol has 84%, from China National Petroleum Corp (CNPC), according Madrid’s to El Mundo newspaper.

“Repsol won't consider any other option than the sale of a partial minority stake in YPF. Our priority is and remains a public offering,” a spokesman for Repsol said on Wednesday.

State-owned CNPC had already offered to buy 75% of YPF from Repsol over the summer for 14.5 billion USD, but the Argentine government is thought to oppose Chinese control of its oil reserves.

Repsol is expected to announce an about 20% cut in its 2009 interim dividend to partly offset weak cash flow hit by heavy investments and a fall in profits of over 50 percent this year