April 16, 2012 at 2:04 pm #1877
Argentine president plans to nationalize oil co.
April 16, 2012 1:15 PM ET
By ALMUDENA CALATRAVA
BUENOS AIRES, Argentina (AP) – Argentine President Cristina Fernandez on Monday proposed a bill to nationalize 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 $3 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 nationalization of YPF, which represents 42 percent 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.”
April 16, 2012 at 2:05 pm #4648
The move by Argentina to nationalize Spanish owned YPF is making lots of international waves. The US has already complained to WTO about import limits and is on record that it will protest any move to nationalize the YPF assets – the topic was among items discussed in the Latin Americal Summit in Colombia recently.
Argentina long know as credit junkie who’s financial position is always a challenge, but now it is having massive internal problems as the Default Risk surges to critical levels from years of restructuring and being unable to access capital markets have it hitting an “irrational wall again” and desparate moves as motivation for the privatization move.
Privatization will ultimately be a lead life-raft for Argentina since it guarantees it will introduce a irrecoverable defection from past friends-with-benefits partners in the global community and hit the next G-20 meeting/IMF members more strongly that it has the LA Summit in Colombia – since there isnt enough money to address EU & Argentian crisis at same time.
Since Argentina YPF refineries make mostly anode/calcinable grade petcoke ….. its going to add fair amount fear premium to price GPC / CPC from it as well.
You must be logged in to reply to this topic.