Repsol rejects Argentine offer for YPF expropriation

Unless they sort it out, I can't see the hondas gridding up there in 2014.


SPANISH oil giant Repsol has rejected an offer of $US5 billion ($A5.43 billion) from Argentina to compensate the company for the seizure of its subsidiary YPF last year.

"The board of Repsol judges the offer of a nominal amount of five billion dollars unsatisfactory for the interests of the company because it considers that the amount does not match the loss suffered by Repsol," the company said in a statement, citing an "exhaustive" analysis of the offer.

Repsol launched a legal battle for $US10 billion in compensation after Argentina in May 2012 expropriated 51 per cent of shares in the oil company YPF from Repsol, its majority shareholder.

Argentine President Cristina Kirchner argued that Repsol had failed to make agreed investments needed to expand domestic production.

Her signing of the expropriation bill soured relations with Spain, the country's former colonial master.

Repsol on Wednesday said the Argentine government had offered it $US5 billion in the form of stakes in the huge Vaca Muerta oil deposit in the country.

"Repsol's board and directors welcome the Argentine government's interest in finding a negotiated solution and hope that an open attitude to dialogue will be maintained," the company said.

 

I say the fly the colors? A little bird in the tank, maybe?