MercoPress. South Atlantic News Agency

YPF’ golden boy in 2009 was offered the same job but his demands were considered ‘excessive’

Galuccio back then asked for 2 million dollars per annum and have his polo ponies flown from UK to Argentina

Miguel Galuccio the new CEO of seized oil corporation YPF had already discussed conditions with the Argentine government for the job back in 2009, reveals the Spanish press. At that time no agreement was reached because the salary and other conditions he demanded were considered excessive.

El Pais from Madrid reports that back in 2009, when YPF was still tightly under Repsol control and no surprises were expected, the deal with Galuccio fell through because he demanded an annual salary of 2 million dollars plus having his polo horses flown from the UK to Argentina.

Ten years before in 1999, Galuccio was working with YPF when Repsol bought the Argentine flag oil corporation. According to El Pais in his CV Galuccio said he left the company “decided to look for new horizons since he did not agree with the new management model”. However before leaving YPF, then under Repsol control, he was the presenter in a promotional video praising the purchase of YPF by the Spanish company.

In 2009 Galuccio was living in London and was an executive at Schlumberger Business Consulting, SBC where he was making 850.000 dollars per annum. However since the conditions of 2009 were not accepted, El Pais wonders or rather speculates what are the conditions he negotiated with the government of President Cristina Fernandez for his acceptance of the CEO post in the seized YPF.

“As to Galuccio’s professional capacity there is unanimity in Argentina: he’s the right man for the right job. But there has been no indication, information or criticism regarding his contract conditions”, points out El Pais.

President Cristina Fernandez formally announced Galuccio nomination and presentation last May 4 when she signed the controversial bill seizing a 51% stake in YPF from Spain’s Repsol, basically alleging the company had not completed the contractual investments needed to ensure domestic supply.

Meanwhile the province of Santa Cruz which had withdrawn several concessions from YPF at the peak of the conflict with Repsol in March, announced the full restitution of all licences and Governor Daniel Peralta is scheduled to travel this week to Buenos Aires to meet with Galuccio.

Under the new share distribution of YPF, the ten hydrocarbons producing provinces hold a 24.99% stake; the federal government, 26.03%; the Eskenazy family 25.06%, Repsol retains 6.4% (of the original 57.4%) and 17% which trade in Buenos Aires and New York stock markets.