Argentina intensifies the siege against Repsol oil company

Six provinces have decided to null the contracts of oil exploration of Spanish Company Repsol-YPF, a new public enemy of President Cristina Kirchiner. The provincial Chabut government, one of the first to invest against the company, went further: Chabut has announced the end of concession of Manantiales Behr deposit, the most important of region. The strategy has paved the way for a possible re-nationalized of YPF, so privatized in the past, during the Carlos Menem Administration. The Provincial Governments have alleged a breach o f contract of exploration by the Repsol-YPF, but various experts believe Kirchner’s Government may pass by law or decree, the reintegration to state of at least 30% of company shares.President Cristina is assessing various proposals, among them, one to predict the declaration of company as an asset of “public interest”, giving it back to State the control of 35% of its shares. Since 2008, 25% of YPF Capital are held by the Argentinean group Petersen, an old Kirchner allied. The others 50% it does belongs to Repsol Spanish Company. The rest is diluted in the market. Besides Chabut, Rio Negro, Salta, Mendoza, Santa Cruz e Neuquén already had cancelled their concessions contracts. In all the cases, the provincial governments alleged lack of investments and a cut back on the oil production. The numbers, of Kirchner government, points that between 2002 and 2011, the oil production had a drop down from 43,9 million of cubic meters to 33 million (of which 35 % are produced by the Repsol-YPF). President of Argentina, in her speech held a month ago, regretted by the fact her country incurred in high expenditures, more exactly of USD$10 billion last year on importation of fuels.Source:OGlobo, Translation:EGE.