Argentine government offered no compensation to Repsol, says YPF

Repsol said its board rejected a $5bn compensation offer.

New Statesman
Photograph: Getty Images.

YPF, an Argentina-based integrated oil and gas explorer, said that the Argentine government has not made any official offer to compensate the Spanish oil major Repsol for expropriating its controlling stake in April last year.

YPF, in a statement, said: “It is not true that there has been an official offer from the Argentine government. It is however true that there were conversations between representatives of YPF and Repsol shareholders intended to bring both parties close to a deal.”

This statement comes after Repsol said its board has rejected a $5bn compensation offer from the Argentine government as it it was  against the interest of its shareholders.

Repsol, in a statement, said: “Following an exhaustive technical and economic internal analysis, supported by external specialist reports, the board of directors considered (the offer) unsatisfactory for the interests of the company.”

In May 2012, Argentina took over controlling stake from Repsol in YPF as the government alleged the Spanish company was not substantially investing in the company.

Following this, Repsol initiated many lawsuits for an estimated loss of over $10bn due to the siezure.

The firm had earlier pointed out that it would also agree to an out-of-court settlement as long as it gets fair compensation, which could be cash, bonds or liquid assets.