Argentina on Path to Nationalize Oil (REPYY)

Argentina’s President Cristina Kirchner has proposed the nationalization of the country’s oil resources in a move that will cost Spain’s Respol YPF SA (OTC: REPYY) most of it’s 57% stake in YPF, the once publicly-traded Argentine oil company in which…

By Paul Ausick
Published April 17, 2012, 7:13am ET · 1 min read

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Argentina’s President Cristina Kirchner has proposed the nationalization of the country’s oil resources in a move that will cost Spain’s Respol YPF SA (OTC: REPYY) most of it’s 57% stake in YPF, the once publicly-traded Argentine oil company in which Repsol bought a controlling stake in 1999. Kirchner’s move requires approval by the country’s legislature, a slam-dunk given that her party controls the government.

Repsol, and the government of Spain, of course object to the expropriation of Repsol’s stake in YPF. Kirchner has said that a federal tribunal will set the compensation price for current shareholders. Repsol’s stake in YPF was worth about $6 billion before the Kirchner’s announcement.

Repsol YPF’s shares lost -4% yesterday, to close at $21.87 in a 52-week range of $21.07-$36.35. The yearly low was set yesterday, and today could see another new bottom.

Paul Ausick

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Paul Ausick

Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.

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