Agentina to expropriate oil-and-gas producer YPF SA

Vitaliy_Kiselev

BUENOS AIRES -(Dow Jones)- Argentine President Cristina Kirchner said Monday she will ask Congress to expropriate oil-and-gas producer YPF SA (YPF, YPFD.BA), allowing the government to share ownership of the company with oil producing provinces.

The bill would give the government and the provinces a total of 51% of ownership in YPF, Kirchner said in a speech announcing YPF's expropriation. Of that controlling stake, she added, the federal government will obtain 51% while the provinces will split the remaining 49%.

The bill's passage will require two-thirds support in both houses, Kirchner said. Given widespread public support for state management of the company, the bill seems likely to become law.

Kirchner blamed YPF for declining oil and gas production and said the company is largely responsible for forcing Argentina to become dependent on imported oil and gas for the first time in 17 years. She said a lack of investment in the sector led Argentina to incur an energy deficit surpassing $3 billion last year.

"This situation almost turned us into an inviable country," Kirchner said.

Argentina is the only major Latin American country without a significant state presence in the oil industry. Mexico, Chile, Brazil, Venezuela, Peru, Colombia, Bolivia, and even tiny Uruguay, all boast state-run firms that are important players in their respective oil and gas industries.

The bill calls for YPF's shareholders to be compensated at a value to be determined by a federal tribunal.

Via: http://www.euroinvestor.com/news/2012/04/16/update-argentina-to-expropriate-ypf-share-ownership-with-provinces/11960787

sebasp1

Yeah this was announced today at noun here and it made a bit hit on the people around me and i guess all the people in Argentina we have yet to see how this decision plays out, there is some controversy but the general concesus i think is a positive response. On the other hand Spain government seems very mad, which i think its kinda hilarious but i guess i cant expect more from a country that still has kings killing elephants.

what i found disturbing is that they reaction so strong when a multinational company is touched yet they turn a deaf ear to its people reclaims.

Vitaliy_Kiselev

I support simple practice. Oil and gas companies get only payment for their own work, I mean work for getting this resources out of the deep. But resources themselfs are property of all the people.

sebasp1

I agree problem was it seems repsol wasn't doing necessary investments, and btw we have suffered half of last year and this with oil shortage i myself had suffered this.

What we are hearing now is a very bad response from behalf of Spain. Wish it wouldn't come to this but seeing your charts a couple days ago i realize they have a big crisis going on.

But to blame Argentina of steeling them our own oil its madness.

GOODEMPIRE

I just noticed this story. I wish we could be moving in the same direction. But Rosneft has announced plans to merge with Exxon Mobil today

Vitaliy_Kiselev

The Spanish government will defend national interests over oil giant Repsol after Argentina announced it intended to take over its YPF unit, Spain's ruling People's Party said on Monday.

"The government has to decide on its response, but I dont have the slightest doubt that it will be the most appropiate response to defend national interests and Spanish interests and a sufficient and complete response to defend the interest of Spanish companies in Argentina," said the general secretary of the party, Maria Dolores Cospedal, speaking at a news conference.

Via: http://in.reuters.com/article/2012/04/16/repsol-spain-idINE8E8EU00M20120416

Somehow big corporation stealing resources owned by other country are making it in the national interests of Spain. It does not correlate with the shit we had been told every day on TV about proper energy market and open democracy (tm).

derek

spanish Government say :Dont cry for me argentina. LOL

kicap

@Vitaliy_Kiselev "I support simple practice. Oil and gas companies get only payment for their own work, I mean work for getting this resources out of the deep. But resources themselfs are property of all the people."

This is what Malaysia is doing since 1974. We believe this is the right way. But be careful of Government turning into so much dependency on Oil and Gas company afterwards. That is what happening now too.

dtr

Iraq should get inspired by this...

Fulgencio

i wonder if it is a good move... who will invest in Argentina now? every company thinking about opening a production plant there will think it twice

Vitaliy_Kiselev

who will invest in Argentina now? every company thinking about opening a production plant there will think it twice

How opening production plant is related to resources that become owned by people I really do not know.
Plus argument is pretty bad, as it had been used in almost any similar case, but reality always showed that business is pragmatic and it likes countries with soverinity.

Fulgencio

@vitaly owned by people??? hehehe i hope you are right. i'm not a pro-capitalist.. but i think this Argentina crazy lady dressed in expensive clothes is playing a double game. is it a socialist regimen?? no! are argentinian companies being nationalized? no! it is not socialism.. it is egomaniac populism.. and double games are dangerous

Vitaliy_Kiselev

it is egomaniac populism

I see zero logic here. As you can see, factual data shows that country really need this resources and that previous approach resulted in big money and resources loss.
Point here not in ...isms , point is that goverment is acting in interests of the country.

gameb

Kirchner did very well - like other countries are doing the same thing right now on this sucked out continent. This is the only way of hope for latin american - cruelly abused by colonialism and neo-colonialism. Like here in Central America, Coca-Cola (exclusive monopol) gets the water out of the countries earth and resells it to the people their own water for $1.5 a liter. Read: Eduardo Galeanos book "The open veins of Latin America" (Las venas abiertas de Latino America) you read it like a crime novel, explains everything about this tragic hemisphere...

gameb

@Fulgencio Taking control of their resources, economy and political power is basic for a country to raise head. And if you need to throw out the european or north-american blood suckers for that - ok - thats the way it goes... they won't leave for nothing anyway. After that let these countries do whatever and however they want to do. But in their own way. They don't need no opinions or judgments of arrogant occidental analysts. And if their presidents wears jewels, let them wear it. It doesn't really change anything.

Fulgencio

Así se organiza una estafa...

http://economia.elpais.com/economia/2012/04/16/actualidad/1334599671_032699.html

http://www.ieco.clarin.com/economia/Cristina-reclamo-votar-privatizacion-YPF_0_676132424.html

http://www.rtve.es/noticias/20111108/repsol-anuncia-mayor-descubrimiento-su-historia-yacimiento-gas-pizarra-argentina/473961.shtml

http://www.lanacion.com.ar/m1/886509-nestor-kirchner-apoyo-la-privatizacion-de-ypf

For people who can not read spanish: Every country has the right to expropiate LEGALLY the companies that use their natural resources if they consider it vital for their developement Even this is true.. there were some important suspicious things about this expropiation These few links above explain how to make a fraud

The president herself and her husband (the argentinian president in those days) were very active asking the vote for making YPF private... ¿why was it then the best for argentina and now it is the oposite?
The will only expropiate the capital that is in hands of repsol... not the capital in hands of USA fonds of interest... or the ones owned by the Eskenazy family (involved in the fraud) expropiations have to be equaly divided betwen the owners... not just the ones who´s country is into a deep economical crisis... that is called cobardy at the least.. you could use worst words when you realize this country is the one that helped more argentina during their crisis against IMF (1 Billion dollars)
The supposed reason for expropiation is they were not doing enough investments... just when they have just anounced the biggest finding of petrol ever.. Vaca Muerta.. 927 millions barrels of petrol

Vitaliy_Kiselev

I don't see anything original in Spanish press and they had been paid to write all this.

Every country has the right to expropiate LEGALLY the companies that use their natural resources if they consider it vital for their developement

Each country have right to do anything if they have soverinity. And must have local laws prevail on international laws. But it is not the case mostly :-) Hope that many countries will thow out many international standards soon.

Otherwise it is simple. I again remaind you that politic can do only thing he can do, things that are possible. So, before it had been impossible to do or situation required to act as they acted.
Real politics is not some dumb religion then they choose one vector and break all rocks on the path.

Fulgencio

Clarin and la nacion are argentinian press

Fulgencio

the link from la nacion is from 2007

Fulgencio

el pais is a spanish left wing newspaper... against the actual goverment of Spain

Vitaliy_Kiselev

I did not spend big time on this, but I see that Clarín and La Nación are just not simple newspapers.

Vice president Amado Boudou used newspapers Página 12 and Ámbito Financiero as conduits to launch a series of attacks against media moguls Clarín and La Nación today.

In an interview with La Red this morning, Boudou stated additionally that he thought the newspapers were trying to “overthrow” the government, and their actions represented a “big move” to try to dismiss the ruling power

In modern capitalism, many newspapers are owned by conglomerates who also clearly tell that to write.

Vitaliy_Kiselev

el pais is a spanish left wing newspaper... against the actual goverment of Spain

I do not see why they must stand for Spanish interests at all costs. Small difference with ruling parties makes no difference/

Fulgencio

Do you trust a newspaper called ambito financiero? does the name sound good for you? mmm.. it is a newspaper that comes from the militar regimen times and is about finances.. do you think it is clear?

Try to search about el pais and their relation with the actual spanish goverment.

Anyway most newspaper are shit... but that does not explain why only take control of the spanish shares.. not the ones from USA or the ones from eskenazi family (search for enrique eskenazi.. you will find some surprises)

and.. Does not explain why she herself wanted to sell it to buy it now.. but i can explain it.. they sell it.. the buyers make investments.. and then the "buy" back it cheaper than they sold it.. pure unethical capitalism

Fulgencio

If the want it for the people why not take 100% of YPF instead of 51% and leaving the 49% for the friends they owe favors

Vitaliy_Kiselev

@Fulgencio

I still can't not get your position except that Argentinian president is bad and has some secret plan.

Why do you care that she wanted to do before and that she'll do in the future. If she is doing expropriation of resource company she is doing good thing for her country.
And the future will tell.

If the want it for the people why not take 100% of YPF instead of 51% and leaving the 49% for the friends they owe favors

Because politic is not a god. He constantly balances and do that is possible for now.

DaVeat

It is a healthy exercise of sovereignty and it is Legal. What if it is only against Repsol business ? As far as I know, YPF always belonged to Argentina´s government. (YPF stands for Federal Oil deposits ) and was only selled for private corporations under Menem administration. One of the worse scam governments in the history of LatinAmerica

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