MercoPress. South Atlantic News Agency
Respsol warns its peers with legal actions if they team up with nationalized YPF
Letters were sent out to oil majors such as Exxon-Mobil, Chevron and Conoco-Phillips Spain-based energy group Repsol has sent letters to oil majors including Exxon-Mobil, Chevron and Conoco-Phillips warning it would sue them if they try to invest in YPF or its assets, reports the British newspaper The Financial Times.
According to the newspaper, whose staff had access to the documents, the letters were sent on Monday emphasizing that “Repsol would take actions and/or legal proceedings necessary to protect our investment … to prevent any improper interference or unfair competition by third parties seeking to take advantage of the current circumstances to directly or indirectly acquire interests in YPF assets in which we have an interest”.
It said it could also sue companies which “profit at the expense [of Repsol]” or take any steps “prejudicing Repsol’s ability to fully defend and recover its rights”.
The letters allegedly conclude saying “We [Repsol] are confident that we will count on your understanding and support.”
After the Argentine government expropriated the country’s biggest company by seizing a 51% control, which left Respol with a 6.4% stake, Repsol has called the nationalisation “unconstitutional, discriminatory and unlawful”.
President Cristina Fernández appointed Miguel Galuccio as new YPF chief until shareholders meet on June 4 to elect a new board.
The Argentine government needs deep-pocketed partners to help YPF develop Vaca Muerta, which is considered the world’s third largest shale reserves – oil and gas trapped deep in the earth’s bedrock that require costly, high-tech drilling to extract.
Planning Minister Julio De Vido, and Economy Deputy Minister Axel Kicillof, who were put in charge of YPF by decree on April 16, has already sounded out Total of France, Petrobras of Brazil and US companies Chevron, Conoco-Phillips, Exxon-Mobil and Apache Corp about partnering YPF, but there have been no announcements.
Repsol said earlier this year it had discovered 1.5 billion barrels in contingent reserves it expected could be extracted – in Vaca Muerta, of which 1.2 billion would be attributable to YPF. Of that, 116 million were classified as reserves, meaning the investment decision to develop them had been taken. In all, it said Vaca Muerta had total prospective reserves of more than 21 billion barrels.
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Read all commentsArgentina is a product of colonialism, conquered by the sword, most of the natives killed and infected by disease, their land taken from them and worked by imported African slaves, oversean by imported European colonials. The African's who made up 50% of the population would themselves completely disapear from Argentina between 1850-1900 in what could have been a chilling fore runner to the disareances of the Dirty War in the 1970's when an estimated 30,000 Argentines were raped, tortured and murdered, many more were held illegally in detention camps and tortured. The true figure for the dead could be as high as 100,000, no one knows because there is little official documentation and most bodies were dumped in the sea.
May 08th, 2012 - 02:41 am 0Argentina took land from its neighbours in numberous wars , civil wars and land grabs - Paraguay, Uraguay, Chile. Today Argentina despite the changed political landscape is still a nation characterised by uber nationalism. The claim to the Falklands was surendered in 1850 but reserected in 1941 by a fascist junta, which inc Peron, they thought their friends the Nazi were going to win the war, the Falklands looked easy picking.
In 1982 Argentina was under the latest succession of a series of fascism military junta's. Their hold on power was looking precarious, in deperation they sort a war, Chile looked like a good victim, they already claimed lots of land and were ignoring the international tribunals that had ruled in Chile's favor. But then they changed their mind and invaded the Falklands. Today the war is romanticized by a nation ruled by a kind of cross between a Neo-Nazi uber nationalist and a Charvesta Revolutionary uber Marxist. The only thing missing is the land reform. Maybe that's for later? But as few natives remain, maybe they'll just ignore their rights... God knows they always have. An entire culture replaced by a European one. Entire languages destroyed.
Timmerman should take time to read about his country's history.
Incidentally, has the Argentine government actually done anything about it's (now passed) deadline for companies to not be drilling in Falklands water? Wasn't the deadline almost a week ago?
May 08th, 2012 - 10:11 am 02 They are developing a strategic plan which should be ready in about 12 months.
May 08th, 2012 - 10:35 am 0Commenting for this story is now closed.
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