Argentina’s nationalized YPF oil and gas corporation will issue bonds for 3.5 billion Pesos (760 million dollars) as part of its push to reduce fuel imports by investing in domestic output, the energy company said in a letter to regulators on Monday.
In May the government seized a 51% stake in YPF from Repsol after accusing the Madrid-based parent company of under-investing in Argentine production and planning to develop oil and gas resources in other world locations.
The board of directors of YPF, at their August 10 meeting, approved the issuance of negotiable obligations up to 3.5 billion Pesos, a letter from the company to local stock market regulators said.
The debt issuance will come under a one billion dollars 2008 shelf registration.
The nationalized company says it needs to invest 7 billion dollars per year in production capacity in order to regain energy self-sufficiency after years of insufficient drilling and rising fuel imports.
YPF opened a diesel fuel refinery near the city of La Plata last week, part of its plan for increasing fuel output by 26% by 2017 and on Friday the company reported an 8% year-on-year increase in second-quarter net profit to 833 million pesos (181 million dollars).
The nationalized corporation also informed that in the first five first months of the year overseas purchases of fuel had dropped significantly, but the Secretary of Energy also revealed that on the sixth month, last June, YPF imported a record 190 million dollars of different fuels.
The 190 million dollars is almost similar to the total imports of the first five months of 2012 and well above the average of the previous administration. Compared to June 2011 imports were up 21%.
Gas-oil grade 3 or Euro-diesel which is top of the quality list was the fuel most imported: 145.867 cubic metres for 127.71 million dollars. The rest, approximately 40 million was mostly for premium gasoline and 20 million natural dollars of gas.
According to YPF this happened in a context of full utilization of the company’s refining capacity which was taken “from 83% to almost 100% which is a new historic achievement”, said YPF CEO Miguel Galuccio.