Uh, this can't be good...

[nicoenarg]

Spanish king steps into Argentine YPF row.

This sounds like the matter of nationalizing YPF is a lot more serious than the media and politicians let on.

I have said this before, if they nationalize YPF then Argentina should forget about foreign investment.

 

[scotttswan]

Can't be too happy with these posters being put up all over the place.

 

[nicoenarg]

Can't be too happy with these posters being put up all over the place.

Is that official YPF posters? Wonder whether they signed on to do that before the government started being all up in their business.

 

[scotttswan]

Is that official YPF posters? Wonder whether they signed on to do that before the government started being all up in their business.

they're "Nuevo Encuentro" posters who were/are part of Frente para la Victoria

So not "official" government posters but they have strong links to the government.

 

[Amargo]

This is not an official YPF poster. The YPF logo shown is actually an old logo used many years ago.

 

[Amargo]

By the way, state-owned YPF was actually not that bad. The company employed thousands of people, had huge reserves of oil and gas (Argentina was a net exporter) and -if I don't remember it wrong- was profitable. Since taking over, Repsol has not invested anything in exploration and has just sold the oil from the explored fields they bought.
A similar sad case as Aerolíneas.
Not sure how this government could match what the old state-owned YPF did, probably they do not have the intelligence/moral to do it. But a (partially) state-owned oil company is not a bad idea.
The thing is I don't see how the govt can buy it back.

 

[nicoenarg]

By the way, state-owned YPF was actually not that bad. The company employed thousands of people, had huge reserves of oil and gas (Argentina was a net exporter) and -if I don't remember it wrong- was profitable. Since taking over, Repsol has not invested anything in exploration and has just sold the oil from the explored fields they bought.
A similar sad case as Aerolíneas.
Not sure how this government could match what the old state-owned YPF did, probably they do not have the intelligence/moral to do it. But a (partially) state-owned oil company is not a bad idea.
The thing is I don't see how the govt can buy it back.

It is not whether it is good or bad for YPF, its about how its bad over all for Argentina. If Argentina tries to nationalize this company, it will spook the investors from outside.

Also, that was a long time ago when YPF had huge reserves. Before everyone in Argentina bought up cars on credit (one example), and demand shot up through the sky.

As for how Argentina could nationalize it, well seeing that Cristina's best friend Chavez nationalized part of the operations that Exxon was responsible for and then instead of paying 900+ million US$ that Exxon should have been given, Chavez decided to pay out some 200 million or so and called it even, I don't doubt Cristina is capable of doing something similar. They don't need the funds, they can make up their own rules, kinda like Chavez.

In light of all of this, I am not surprised the King got involved.

EDIT: Actually Exxon was seeking $12 billion US, the court decided $900 million, Chavez in his wisdom decided $255 million.

 

[dennisr]

Argentina has a refining problem, 85% utilization. This smoke screen about investment is all about dividends being paid to stockholders, dollars leaving Argentina. YPF SA invested five billion us dollars in explorarion last year.

 

[nicoenarg]

Argentina has a refining problem, 85% utilization. This smoke screen about investment is all about dividends being paid to stockholders, dollars leaving Argentina. YPF SA invested five billion us dollars in explorarion last year.

Could you post a link to that information? I am not challenging it, I would actually like to read it, and then be able to tell people about it.

 

[Amargo]

Argentina has a refining problem, 85% utilization. This smoke screen about investment is all about dividends being paid to stockholders, dollars leaving Argentina. YPF SA invested five billion us dollars in explorarion last year.

Where are the results of that? The reserves keep going lower and lower every year. Argentina went from being an O&G exporter to being an importer which was just inimaginable a few years ago. I am sorry, but I seriously doubt the figures of Repsol YPF.
YPF is now a shadow of what it used to be.