Argentina To Offer Repsol 5 Billion Usd For A New Deal

[toongeorges]

Naaaa, something wrong here.

Could it be desperation?

 

[ElQueso]

I had thought they were valuing Repsol's stake in YPF at more like $10B back when all this went down. Is it bad memory on my part, were they exaggerating then or is Repsol just going to take whatever it figures it can get, much like the bond holders in 2002 that settled? Part of their (maybe unspoken) compensation beyond the $5B could be shared revenues on higher profit exported oil (which will probably never happen, at least not in quantity or at discounted tax rates offered now - how far can you trust Argentina?).

I wouldn't be surprised if Chevron had as part of its requirements in investing that Argentina show some good faith by paying off Repsol. Last thing Chevron wants is to invest a bunch of time, money and expertise only to have it "expropriated" for the good of the people of Argentina once things get going.

Also, it will still take time to develop the fields. As the article mentioned, investment (and therefore development) has been slow so far. It will be a good thing for Argentina when that all goes through, but it's not any immediate help, I don't think.

How typical of the government to want to rename the field. Nice little propaganda idiocy there.

At the end of the day - investor beware. Until some other, less isolationist government actually gets control of Argentina, the government still believes that it has the right (from wherever or however it was granted [or taken]) to say one thing and do something completely different in the end. Must it be a mixture of incredulity on the part of investors (i.e., they think surely Argentina can't keep on shooting itself in the foot) and greed on the investor's part as well that keeps bringing them back to get screwed?

I believe that the current folk running this country would tell investors anything they want to hear to develop those fields and get their energy situation under control and even start exporting and grab all those dollars to shore themselves up, then turn around in a few years and totally screw every foreign company or investor involved. "Oh hey, that was another government, we can't be held responsible for the unfair decisions that they made."

 

[nicoenarg]

I remember it being around 9 or 10 billion as well.

This is a crappy deal, getting back 50 cents on the dollar that was stolen from you but it is better than getting back nothing.

The Spanish government seems to be involved and that might have something to do with why Repsol seems okay with it.

 

[Rich One]

In any event those that knew about this deal bought YPF stock...!! like Moreno had YPF shares that añmost cuadrupled in value the last year...!! from 75 to 252 pesos. Insider trading anyone.

 

[Gaucho_ec]

I wouldn't be surprised if Chevron had as part of its requirements in investing that Argentina show some good faith by paying off Repsol. Last thing Chevron wants is to invest a bunch of time, money and expertise only to have it "expropriated" for the good of the people of Argentina once things get going.

In the YPF deal, Chevron has required -and Arg granted- a special account with dollars (outside Argentina of course) to be used as "deposito". Basically meaning "if you don't pay up, that's where I take my money from".

 

[ghost]

When every single deal you do is dirty, complicated, slippery, complex, underhanded, convoluted, unpredictable and sleazy. You get the reputation of sleaze bag or a K, or maybe you are just Argentina.

 

[Rich One]

YPF stock up 11 % today good for Kicillof

 

[toongeorges]

There is more to the story, apparently Argentina does not offer the 5 billion USD in cash but in Argentine government bonds, see

http://online.wsj.com/news/articles/SB10001424052702304465604579221752341986642

 

[scotttswan]

There is more to the story, apparently Argentina does not offer the 5 billion USD in cash but in Argentine government bonds, see

http://online.wsj.co...221752341986642

Pass the bill on to the next lot that comes to power, was this not also their plan for getting all the drug dealers undeclared money?

 

[ghost]

If Repsol is stupid enough to take bonds they deserve the loss. The President of Repsol will lose his head on this one.
http://au.news.yahoo.com/thewest/a/-/world/20048725/repsol-board-gathers-to-ratify-5-billion-argentina-deal/