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Repsol’s numbers are ‘false’ and caused ‘great damage’ to the Argentine economy

Thursday, April 26th 2012 - 01:21 UTC
Full article 21 comments
Deputy Economy minister Axel Kicillof, allegedly master mind behind the YPF seizure Deputy Economy minister Axel Kicillof, allegedly master mind behind the YPF seizure

Three Argentine ministers denied as “false” that YPF, under control of Spain’s Repsol had invested more than 20 billion dollars in the company since 1999, arguing the fall in Argentine oil and gas production and reserves is clear evidence of that.

Planning Minister Julio De Vido and Deputy Economy Minister Axel Kicillof, who head the audit investigating investments made by YPF, currently in the process of expropriation, denied on Wednesday that Repsol had invested more than 20 billion dollars, as the Spanish company had stated in full page ads published in the Argentine press on Tuesday.

“Repsol’s investment was insufficient because it triggered a reduction of production and reserves of YPF, leading to an important damage for the company and the country,” the communiqué stated.

“It is false” that the Spanish Repsol, the company that the government is aiming to expropriate the 51% of YPF, has invested more the 20 billion dollars between 1999 and 2011, it continued.

Likewise Economy Minister Hernán Lorenzino proved wrong some of the data published by Spanish company Repsol regarding oil and gas production since YPF was taken over, highlighting “the damage to the Argentine economy”.

Lorenzino stated that “between 1998 and 2011 YPF experienced “a 54% drop in oil production and a 97% fall in gas production.”

“This clearly implies damage to the economy and translates into damage on the people. It remains fundamental that there is support for the President’s decision” to send a bill to expropriate 51% of the shares from Repsol, Lorenzino said.

The nationalization bill is expected to be approved by a wide margin with support from opposition parties. Similarly public opinion polls show 62% of Argentines interviewed supported the decision to seize YPF, which since 1922 has been the Argentine flag company of the oil and gas industry.

Top Comments

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  • Chicureo

    UK Foreign Secretary William Hague has hit out at Argentina and China after their governments announced today that the seized petroleum reserves of a Spanish-controlled energy firm would now be developed by PetroChina and the Sinopec Group. “It was all in bad faith as they seem to have planned stealing it all along...” the Foreign Secretary was quoted.
    Argentina earlier had sent shock waves through the oil industry by announcing plans to nationalise local oil assets controlled by Spanish company Repsol.
    Mr Hague warned the move by President Cristina Fernadez to take over a large part of YPF, the country's biggest oil company, was part of a wider protectionist agenda and that her eventual strategy was to seize the Falklands offshore petroleum fields as well.
    Mr Hague's criticisms come as it has been reported the takeover scuppers years of planning by China's Sinopec Group to buy YDF.
    Sources told Chinese website that Sinopec had held talks with Repsol to buy its controlling 57% stake in YPF. cited a source as saying Sinopec, China's second-largest oil company, had reached a non-binding agreement to take over YPF for more than £9bn.
    The report said Sinopec was still in talks with Repsol to buy YPF despite the nationalisation threat and the Financial Times said Repsol had not informed Argentina of the discussions with the Chinese oil firm. PetroChina that it was announced today would be spearheading the new reorgaization of YPF had no comment.

    Apr 26th, 2012 - 01:40 am 0
  • toooldtodieyoung

    I'm not saying that the Argentinians have been cooking the books while conducting their “Audit”, that would be wrong and they would never do anything like that........... but keeping those books “warm”.......?

    Apr 26th, 2012 - 07:01 am 0
  • British_Kirchnerist

    I always doubted the 20 billion figure. Either they were lying or they made such a big sum go remarkably un-far

    Apr 26th, 2012 - 08:28 am 0
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