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YPF survival battle to remain private took off in two Patagonian provinces

Thursday, March 15th 2012 - 06:07 UTC
Full article 5 comments
Four oil wells in the San Jorge basin taken over by Neuquen and Santa Cruz alleging breach of contract Four oil wells in the San Jorge basin taken over by Neuquen and Santa Cruz alleging breach of contract

The governments of the Patagonian provinces of Chubut and Santa Cruz announced the termination of the contract of exploitation of four different oil wells that YPF handles in the Gulf San Jorge and that both provinces share. Spain’s Repsol, the oil giant that controls YPF has announced it will file a lawsuit against the measure.

The measure was taken by decree, according to government officials of both southern Argentina provinces that attended a rally held at the borders between Neuquén and Santa Cruz and led by Governors Martin Buzzi and Daniel Peralta.

Both provinces thus furthered the dispute with YPF. The government of President Cristina Fernandez accuses the oil company of lack of investments in Argentina and also of the downfall of gas and oil production of the last few years, as rumours regarding the possibility of the nationalization of the company grow.

The Argentine government has also demanded a federal court to impede YPF from paying dividends to shareholders since the corporation has non honoured terms of contract.

Meanwhile the company, bought by Spanish giant Repsol in 1999, rejected the accusations, assured that it has invested 350 million dollars in Chubut in the last two years and vowed to file an appeal to guarantee the defence of its rights.

Buzzi signed decree 324/2012 on the Ramón Santos post over national route 3, which states the cancellation of the YPF exploitation contracts of oil wells “El Trébol-Escalante” and “Campamento Central-Cañadón perdido.”

The contracts will be terminated in ninety days and the decision was taken by the Chubut province Government based on grounds that the company did not comply with the promised investments.

Meanwhile, Santa Cruz governor Daniel Peralta announced the termination of the YPF exploitation wells in Los Monos and Cerro Piedra- Cerro Guadal Norte by means of decree 393/2012

During the rally, Peralta assured that the measures taken by both governments seek to redefine the oil movement and warned; “we are here to stop policies that trigger unemployment and social inequality.”

“We are tired of the permanent belittling, of the Spanish policies that order to extract oil of our beloved Patagonia,” Peralta added as he addressed the 13,000 people who attended the rally
 

Top Comments

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  • GALlamosa

    Hmmm...this should be an interesting topic for the EU-Mercosur free trade agreement talks.

    Mar 15th, 2012 - 10:59 am 0
  • Sir Rodderick Bodkin

    YPF must bend over to his new overlord once again. Argentina.

    Bad boys bad boys. Watcha gonna do, watcha gonna do when they come for you. ♫

    :-)

    Mar 15th, 2012 - 08:33 pm 0
  • The Cestrian

    hold on a minute; I thought that the Argies didnt have enough oil, now they are further drying up supplied by ending two contracts within its own borders.

    sorry I just dont get it. It looks like yet another OG by RG Land.

    Mar 15th, 2012 - 11:01 pm 0
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