Repsol to Study Legal Measures Against YPF Nationalization

Argentina Mulls Options after Backtracking on YPF Expropriation

MADRID - Spain's flagship oil company Repsol YPF said Monday that Argentina's decision to nationalize unit YPF SA was "clearly illegal and gravely discriminatory."

Repsol said in a statement that it is currently analyzing "all legal measures it could take to preserve the value of its assets and the interests of its shareholders."

Earlier Monday, Argentine President Cristina Kirchner said she will ask Congress to expropriate YPF and share ownership of the company with oil-producing provinces. YPF shareholders are expected to be compensated at a value to be determined by a federal tribunal.

Repsol owns 57.4% of YPF. The Spanish oil company said that the nationalization would remove EUR1.85 billion ($2.42 billion) in YPF debt from Repsol's books.

It added that its loan to Argentina's Grupo Petersen, which owns a stake in YPF, currently amounts to EUR1.54 billion.

Copyright (c) 2012 Dow Jones & Company, Inc.

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Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Deepwater805 | Apr. 17, 2012
Argentina is once again proving why its the leader of the banana republic world.

ronmacdee | Apr. 17, 2012
Like any immature spoiled child driven by a sense of entitlement, it grabs for what it covets. The land of the indigenous peoples expropriated in the 1870s (Patagonia), spurious claims for the Falkands, and now this Repsol debacle. This child will never grow up.

Federico | Apr. 17, 2012
Another view could be that REPSOL was doing to YPF what Marsans group did to Aerolineas Argentinas. Look at the dividends and balances of the company. Almost all the domestic income of the country is being used to import energy at the same time Repsol is paying billions in dividends instead of reinvesting.


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