YPF Nationalized

[notebook.fix]

This expropriation will go to the benefit of vested interests...not Argentines as sold on the Gov media ...who? Business Associates of Kirchner...it's a money grab by Kirchner & friends.

 

[scottlyon]

The Financial Times is now reporting it.

 

[Crema Americana]

Seems Cristina really stuck it to Spain during times of crisis... talk about kicking a man when he's down.

People already freak out at the slightest rumor and form loooong gas lines instantly, I can only imagine what the gas situation is going to look like in the future under Argentine management.

 

[dennisr]

Aerolíneas Argentinas will be the management model for YPF. Government will be lucky to produce enough jet fuel to fly my ass out of here for my commute. Montevideo here I come. Sorry Argentina, you guys could wreck a cannon ball.

 

[ctru]

Are there anybody in this forum that are working in Repsol-YPF, and can give a inside report?

 

[Crema Americana]

Any speculation on how Spain will respond? Argentina is going to find itself getting very lonely it seems...

Spain is understandably not happy.
http://politica.elpais.com/politica/2012/04/16/actualidad/1334593998_841563.html

García-Margallo: "La decisión rompe el clima de cordialidad y amistad"
The decision breaks the climate of cordiality and friendship



"La decisión que el día de hoy ha tomado el Gobierno argentino de nacionalizar la mayor parte de las acciones de YPF [propiedad] de Repsol, es una decisión hostil contra Repsol, por tanto, contra una empresa española, y por tanto contra España y el Gobierno de España". Así de tajante se ha mostrado el ministro de Industria, José Manuel Soria, en sus declaraciones tras el gabinete de crisis gubernamental organizado en el Ministerio de Exteriores, tras el anuncio del Gobierno argentino, que nacionalizará el 51% de las acciones de la filial de la petrolera.

"The decision taken today by the Argentine government of nationalizing the greater part of YPF shares [property] of Repsol, is a hostil decision against Repsol, as such, against a Spanish company, and as such against Spain and the Spanish government." That's how sharp the Minister of Industry (Jose Manuel Soria) was in his declarations after the governmental crisis cabinet organized by the Foreign Minister after the announcement by the Argentine government which will nationalize 51% of the shares of the filial petrol company.


(Quick translation of some of the key reactions.)

 

[nicoenarg]

Are there anybody in this forum that are working in Repsol-YPF, and can give a inside report?

I don't think anyone from Repsol-YPF is in the mood to give an inside report. I am sure people in the know in the company were hoping that Spanish pressure would force the rabid dog (CFK) to back off a little but it didn't work.

I really don't understand what CFK wants to accomplish with this move. Immediate consequences will probably mean some of the following (correct me if I am wrong):

1. Very pissed off Spain and pissed off EU. They will probably move legally (which might just be a waste of time, remember Exxon and Venezuela?).
2. Spain with the EU will probably make the next move by curtailing Argentine imports. Very bad for Argentina, and very bad for us who live here on a permanent basis and earn in pesos.
3. Investment in Argentina from EU companies (except for probably mob run Italian firms) will be affected. We might see a sudden drop in money coming in from that region. Some US companies might follow suit.
4. Argentina will try to pressure PetroBras out so this newly taken over YPF can expand within Argentina. This will in turn piss off Brazil on a whole new level (they haven't even gotten over the import ban/restriction fiasco). For those who think this is unlikely, well they have already started targeting Petrobras in the manner they targeted YPF, pulling oil concessions.
5. There will be widespread support amongst Argentines for this move by their dear government and CFK and her cronies will be emboldened and we will see more takeovers in the near future.
6. That means more isolation for Argentina, which in turn means more economic problems like inflation through the roof, empty shelves, poverty, etc...which is bad for everybody for it will result in increased crime, more protests and disruptions, etc.

I might have missed points and this was written on the fly so I might have made some mistakes here and there but this is, even though expected, a pretty scary move by this very erratic government.

 

[Gringoboy]

Why do I detect a 'tenuous' link to the current oil exploration being carried out by the British (or sub contractors of the British) off the Falklands (Malvinas)?
I watched CK's speech in full, whilst eating a very large pancho during my lunch break, which is sad in itself.
During her ramblings and the exhibiting of a vial of oil from the first drill in 1907 (?), she went through a list of countries, outlining the percentage of govt control that each had.
The UK is a major oil producer (North Sea), but of course was not included in the list.
There are dark hands at work here.
I'm making wild assumptions, but with a controlling interest in Repsol/YPF, the Argentine govt would have a free hand to explore for oil on it's own continental shelf, which by geographical definition, would include fields around the Falklands.
I may be way out of line here, but suspicion is now my second name when viewing whichever move this govt makes.

 

[qpaso]

After this and the ongoing train wreck of the Mercosur presidency, Argentina is only likely to get RSVP's from Iran, Venezuela and Sean Penn! Keeping fine company indeed. Well played CFK

 

[nicoenarg]

I'm making wild assumptions, but with a controlling interest in Repsol/YPF, the Argentine govt would have a free hand to explore for oil on it's own continental shelf, which by geographical definition, would include fields around the Falklands.
I may be way out of line here, but suspicion is now my second name when viewing whichever move this govt makes.

If that is a move they are planning on making, it is very very dangerous.