MercoPress, en Español

Montevideo, January 30th 2023 - 05:10 UTC

 

 

Repsol board approves the YPF compensation deal worked out with Argentina

Tuesday, February 25th 2014 - 20:43 UTC
Full article 76 comments
Cabinet chief said the deal was 'positive' for Argentina to recover energy self-sufficiency Cabinet chief said the deal was 'positive' for Argentina to recover energy self-sufficiency

Spanish oil major Repsol's board approved on Tuesday in Madrid a definitive 5 billion dollars settlement from Argentina over assets seized in 2012, drawing a line under a two-year battle for compensation.

 Apparently Argentina offered dollar-denominated Argentine bonds with a face value above the agreed 5 billion compensation to account for the discount attached to government bonds since the country defaulted on international debt in 2002.

The Argentine government has also agreed to issue additional bonds to compensate Repsol if the market price of the bonds falls below the agreed compensation, the source added.

Representatives of Repsol's largest shareholders - lender La Caixa, builder Sacyr, Mexican state-owned oil company Pemex and Singapore state investor Temasek Holdings Pvt Ltd - are all expected to back the deal.

Following boardroom approval, shareholders will be asked to give the green light at an annual general meeting in March or April. The deal also needs approval from the Argentine Congress, which could come in May.

Repsol is in the middle of a four-year plan to boost its international exploration and production business to compensate for the loss of YPF, which had accounted for over half of its output. It has said it could sell its 30% stake in Spanish power firm Gas Natural Fenosa to help fund a purchase in North America.

In Buenos Aires the Argentine government described the Repsol compensation deal as “positive” as it will pave the way for Argentina’s energy self-sufficiency.

“It is positive to favor the strategic association of capitals or the acquirement of financing to speed up investments that allow generating energy self-sufficiency” cabinet chief Jorge Capitanich said at Government house, where he held his routine press conference this morning.

The head of ministers explained that the 5-billion-dollar compensation agreement will have to be also approved by Repsol’s administrative board and shareholders and by the Argentine congress.

Defending the accord, Capitanich added that YPF is Argentina’s “emblematic company” to promote energy self-sufficiency and pointed out the state-run firm increased its oil production by 10% since a majority stake was seized in 2012.

Top Comments

Disclaimer & comment rules
  • Vulcanbomber

    Bet they wont take bonds, as they are unlikely to be worth anything than hollow promises

    Perhaps CFK will have to visit the Seychelles to use some of her own (cough cough) money

    Feb 25th, 2014 - 09:33 pm 0
  • toooldtodieyoung

    “The Argentine government has also agreed to issue additional bonds to compensate Repsol if the market price of the bonds falls below the agreed compensation”

    Well, if Repsol has been taken in by that “agreement” then their board of directors is nuts. Given argentina's track record of only agreeing to something when it is in her best interests to do so and then tearing up the agreement when the going gets tough...

    They would be better off looking for hen's teeth...

    or rocking horse sh*t......

    Feb 25th, 2014 - 10:31 pm 0
  • Klingon

    Give credit where credit is due. Kilchoff since becoming the finance minister has actually do a pretty good job so far for the country, This considering the cluster fu## he got landed with, trying to avert an iceberg! ( And dealing with the old hag)
    Would you want the job?

    At least they are trying to pay Repsol back to try and help promote some new investment here.

    Feb 25th, 2014 - 11:58 pm 0
Read all comments

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!