Argentina’s government says it will nationalize YPF,the nation’s biggest oil company. This will push out Spain’s group Repsol–the majority shareholder. What is left now is to see if Repsol will have as recourse, or what it may get for its ownership portion.
The act looks like the moves by Venezuela several years ago to seize the holdings of several multinational oil firms.
Cristina Fernández, Argentina’s president, said the move was necessary because Repsol refused to let YPF invest in aggressive exploration and production which cased the South American nation to import $9 billion in energy last year. The reason may not matter. Large oil companies just received a warning that Argentina is not a safe partner, which in turn will isolate the energy activity of the country even further.
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