http://news.smh.com.au/breaking-news-world/argentina-to-nationalise-spain-oil-company-20120417-1x465.html
Argentina to nationalise Spain oil company April 17, 2012 - 3:44AM AP Argentine President Cristina Fernandez has proposed a bill to nationalise the YPF oil company that is controlled by Spain's Repsol, moving ahead with the plan despite fierce opposition from Madrid. Fernandez said in an address to the country that the measure sent to congress on Monday is aimed at recovering the nation's sovereignty over its hydrocarbon resources. She said the shares being expropriated will be split between the national and provincial governments. The president complained that Argentina last year had to spend more than $US3 billion ($A2.91 billion) to important gas and petroleum. Spanish officials have already protested the plan, saying Argentina risks becoming "an international pariah" if it takes control of Repsol's YPF subsidiary. Spanish Foreign Minister Jose Manuel Garcia-Margallo last week summoned Argentine ambassador Carlo Antonio Bettini to convey concern over possible nationalisation of YPF, which represents 42 per cent of Repsol's total reserves, estimated at 2.1 billion barrels of crude. "This president is not going to answer any threat, is not going to respond to any sharp remark, is not going to echo the disrespectful or insolent things said," Fernandez said to applause from business, union and political leaders at an official event announcing the proposed law. "I am a head of state and not a hoodlum." YPF is Argentina's biggest company, and Spain is Argentina's largest foreign investor, with the United States in second place. Governors of oil-producing Argentine provinces have withdrawn about 15 oil leases, representing 18 per cent of YPF's crude production, alleging the company failed to keep its promises to develop them. YPF has countered that it has invested millions in those areas and plans to increase production, but Argentine officials have said that still falls short. How Argentina may try to displace Repsol, which owns 57 per cent of YPF, has been the subject of wide speculation since the government's pressure campaign began in February. Even with its share prices depressed, YPF is valued at $US13.6 billion, and buying half of that would deplete Argentina's treasury of funds it needs to maintain the populist subsidies that have kept the country's economy afloat. The president's proposal declares that the exploration and exploitation of hydrocarbons is "of national public interest" and declares that building up the nation's supply is a priority. Argentina this year expects to import more than $US10 billion worth of gas and natural liquid gas in the face of an energy crisis, according to estimates from the hydrocarbon sector. © 2012 AP +++++ http://www.guardian.co.uk/business/2012/apr/16/argentina-plan-nationalise-spanish-oil Argentinian president moves to nationalise Spanish-owned oil assets President Cristina Fernández de Kirchner shocks oil industry by planning to seize 51% of Repsol's Argentinian assets Terry Macalister and Uki Goñi in Buenos Aires guardian.co.uk, Monday 16 April 2012 21.29 BST Argentina sent shock waves through the oil industry by announcing plans to nationalise local oil assets controlled by a Spanish company, in a controversial move that threatens to sour the already troubled relationship between the two countries. The move to seize 51% of Repsol's YPF business in Argentina sent the company's shares spinning down 18% on Wall Street and will worry other big foreign investors such as BP. Cristina Fernández de Kirchner, Argentina's president, introduced the new measure to Congress in a bid to recover sovereignty over its national hydrocarbon resources. Kirchner accused Repsol of failing to produce enough oil through YPF to meet Argentina's energy requirements. Repsol's alleged failure threatened to "practically turn us into an unviable country," Kirchner said. Economic and political interest in the country's hydrocarbons has rocketed since the end of last year when YPF announced it had discovered a shale oil site that could potentially yield 1bn barrels. Politicians have accused Repsol of failing to invest enough in future production at a time when the high cost of oil is undermining the country's economy. The nationalisation comes amid escalating threats against operators drilling for oil off the disputed Falkland Islands. Argentina is expected to expropriate about 24% of YPF from Repsol and another 26% from Argentina's Peterson Group at a price yet to be determined by the government. Kirchner said the price would be set by the national appraisal tribunal and insisted the business could continue to be managed "professionally". She said Argentina was one of the few countries that did not control its own oil. YPF is Argentina's biggest oil company and was in the hands of the state until the early 1990s. It was acquired by the Spanish group in 1999 and the boss of Repsol, Antonio Brufau, has been in Argentina since last week trying to head off a takeover. He told Mitre, a local radio station: "You've got to talk, not impose." Speaking in Madrid a few hours before the announcement, the Spanish prime minister, Mariano Rajoy, warned: "Wherever there is a Spanish company, the Spanish government will be there defending its interests as its own." Last week, Spain's foreign minister, José Manuel García-Margallo, threatened to break off economic and fraternal relations with Argentina if Kirchner moved against YPF. Independent petroleum experts were stunned by the development. "They are going to be closing the country as an investment destination," Anish Kapadia, an analyst at the London-based energy investment house Tudor Pickering Holt, told Bloomberg. BP, whose Pan American business in Argentina was a fully-integrated oil business covering exploration, production and petrol marketing, said it was unable to talk about what the nationalisation might mean for its business. "We have not heard anything from the government. It is business as usual for us. I do not want to make a comment on someone else's business," said a company spokesman. BP tried to sell the business in 2010 for $7bn to Bridas Corporation, a deal which fell apart. Kirchner's bill is expected to fly through Congress within the next couple of weeks thanks to the President's legislative majority -- I am using the free version of SPAMfighter. We are a community of 7 million users fighting spam. SPAMfighter has removed 111 of my spam emails to date. Get the free SPAMfighter here: http://www.spamfighter.com/len The Professional version does not have this message
