Argentina To Offer Repsol 5 Billion Usd For A New Deal

[toongeorges]

19 months after expropriating YPF, Argentina is offering 5 billion USD to Repsol for attracting investment in shale oil and gas production.

See http://finance.yahoo...-141007059.html

As an extra Christina wants us to say Vaca Viva instead of Vaca Muerta:

https://www.youtube....h?v=yTc6AF_HkqE

https://www.youtube....h?v=rOuR8N7LW3o

Government seems to have its priorities right ;-)

 

[camberiu]

What? So the nationalization did not turn out to be slam dunk? I am shocked! Shocked I tell you!

 

[Matiasba]

They are looking for external investments. They will go back with the not taking debt decission, they will pay CIADI, club de paris, etc.
I dont like the way theyre managing the situation, I dont like the lack of consistency, I like Kicillof but I dislike a lot Capitanich.

I think the october defeat is irrecoverable, and they are starting to erase things done and retrace because they now, lately realise the importance of private investment. I wrote about this in the forum once, Argentina is the 6th (of 10 -counting Venezuela) south american country in investment. Investment is what gives economy movement, is essential.

I liked the way this government tried to put limits to capitals, especially to financial capitals, to regulate a lot of their scope of action, but now, as well with the "ley de blanqueo de capitales" months ago, I found ridiculous what they re doing.

 

[nicoenarg]

Well Argentina needs foreign investment. It took them 10 years to see that. Better late than never I'd say.

Also glad that Repsol is probably going to take the deal. 5 billion US is a lot better than 0 US dollars. Not sure what the terms would be. I don't see them giving away 5 billion from Central Bank reserves. I also don't see "return" right away from any of the investments in Vaca Muerta (that would be a very long term investment).

Either way, foreign investment in Vaca Muerta will be good for Argentina, regardless of the political corruption. Politicians are bound to get rich but money has to trickle down one way or another to the people.

With that in mind however, Venezuela is rich in oil, and we know where that country is right now...so we'll see how it all really plays out.

EDIT:

Yes, I see the contradictions in my opinion...I'm really trying to be positive about this development but I also can't help but feel a little cynical about it all seeing what's been happening in Venezuela.

 

[nicoenarg]

Matias, everyone knew it was foolish to think the Argentine government could single-handedly manage explorations in Vaca Muerta without any outside investment.

It is this government's policies that made Argentina into a net importer of gas and oil in the first place. And it is also because of this government's lack of credibility that makes everyone not want to invest in Argentina.

No matter how many times one might repeat it, Argentina cannot be self sufficient. Every country needs foreign investment and Argentina is no exception, especially with the amount of unchecked local political corruption.

 

[Matiasba]

Matias, everyone knew it was foolish to think the Argentine government could single-handedly manage explorations in Vaca Muerta without any outside investment.

It is this government's policies that made Argentina into a net importer of gas and oil in the first place. And it is also because of this government's lack of credibility that makes everyone not want to invest in Argentina.

No matter how many times one might repeat it, Argentina cannot be self sufficient. Every country needs foreign investment and Argentina is no exception, especially with the amount of unchecked local political corruption.

It was like we control investment, or at least try -very hard- to control investement, every move, taxing it, with the "amigachos empresarios" etc, and now they understood that investement control the country, that you have to negotiate with the big capital, but the problem is credibility, if you went control crazy and suddenly appears the "ley de blanqueos de capitales" how many do you expect to believe you? was it a big success or was it an enormous fail? this with everything. You cant expect that suddenly people start to believe in you when you changed this way.

What about your speeches, what about the pueblo? what about expectations?
Isnt it betrayal to the people who voted the continuity of the model?

 

[Gaucho_ec]

They are probably getting green light to do a bicicleta, probably with some assistance. To turn those 5b to about 9b.
A friend that's a VP of a mid sized company, with probably 1% of the partners that Repsol has, do it every month almost duplicating a business that's good even before the "bicicleta".

 

[nicoenarg]

It was like we control investment, or at least try -very hard- to control investement, every move, taxing it, with the "amigachos empresarios" etc, and now they understood that investement control the country, that you have to negotiate with the big capital, but the problem is credibility, if you went control crazy and suddenly appears the "ley de blanqueos de capitales" how many do you expect to believe you? was it a big success or was it an enormous fail? this with everything. You cant expect that suddenly people start to believe in you when you changed this way.

What about your speeches, what about the pueblo? what about expectations?
Isnt it betrayal to the people who voted the continuity of the model?

No offense Matias, but believing the speeches of these people is like believing a thief when he says he is doing you a favor by stealing your money. It shouldn't have taken 10 years for people to "lose faith" in liars.

That is probably one of the biggest things that enable political corruption to such a large scale in Argentina that people "believe" in politicians and their speeches. You can go right now to La Campora's website and you'll see phrases like "con la fuerza de Cristina" they were able to do one thing or another. People only listen to speeches and are "kirchneristas", or "menemistas" or "camporistas", or "peronistas"...no matter what the actions of these politicians are.

I am not at all surprised that people believed the lies sold to them by kirchners of a utopia that they have all been waiting for, its been done before a 100 times in various different countries by various different politicians. Its the same story over various continents that begins with, "people before us were in bed with "XYZ" but we are going to fight for el pueblo and fight against "XYZ"" You can fill in whoever and whatever you like in that XYZ but its always the same. Blaming others for faults of your own is the easy way out, it just never fixes the damn problem.

 

[Rich One]

Its all hot air and blue sky, Ciadi, Club de Paris, Fondos Buitres, how many times we heard this before, Facts please. Kicillof expropriated YPF and called Repsol thieves and deserving Zero compensation. YPF stock increased fourfold and Repsol owns still 12 %. Let's wait and see what develops, if Repsoñ accepts, etc.

 

[ghost]

This really smells like dead fish. I can not believe that Repsol would take a measley 5B and then reinvest it a country that is famous for backing out of business deals. And what is Xtina going to pay with? Naaaa, something wrong here.