Spanish oil giant Repsol said on Tuesday it had agreed to accept $5 billion in compensation from Argentina for the country's seizure of its subsidiary YPF. The deal seeks to repair the financial hit taken by Repsol when Argentina's President Cristina Kirchner ordered the nationalisation of Repsol's 51-percent stake in YPF in April 2012. "The agreement reached between the Republic of Argentina and Repsol recognises the company's right to receive $5 billion [3.6 billion euros] as compensation for the expropriation of 51 percent of the shares of YPF," Repsol said in a statement. The amount is to be paid in Argentine government bonds. The agreement has yet to be approved by Repsol shareholders and the Argentine parliament. The deal "stipulates guarantees for effective payment as well as the termination of all judicial and arbitration proceedings and the reciprocal waiver of future claims", the statement added. The expropriation soured relations between Argentina and Spain and sparked international outrage including from Spain's European Union partners. Kirchner blamed it on Repsol's failure to make agreed investments in the firm. Spain saw it as a blow to its strategic interests. The nationalisation of its subsidiary in Argentina hit Repsol's profits hard in 2013, it said on Tuesday in a separate statement announcing its annual results. Its net profits fell by 90 percent in 2013 to 195 million euros, it said. At "constant cost of supply", a measure which Repsol says makes its results comparable to those of US oil companies, it recorded net profits of 1.8 billion euros, down by 6.7 percent from the previous year. Repsol said last week that the expropriation of IPF forced it to make provisions of 1.28 billion euros in 2013, hitting its financial results. Settlement of the dispute could help to lure investment to the vast Vaca Muerta shale oil and gas field in Argentina, discovered by YPF in 2010. It is estimated to contain the equivalent of 22.8 billion barrels of oil, described by Repsol at the time as the largest discovery in its history.
GMT 22:53 2018 Thursday ,13 December
Indian Minister of Trade meets with UAE Ambassador, Chairman of Emaar PropertiesGMT 13:41 2018 Thursday ,06 December
Tyre maker Continental opens lab to extract rubber from dandelionsGMT 15:22 2018 Friday ,30 November
Paper industry around famous Chinese lake to be shut down by 2019GMT 11:13 2018 Sunday ,18 November
Electricx 2018 kicks off with participation of over 20 countriesGMT 14:17 2018 Thursday ,25 October
BP eyes entering several new Rosneft projectsGMT 12:08 2018 Saturday ,20 October
OPEC participants performed Vienna Agreement by 111%GMT 16:14 2018 Saturday ,06 October
Saudi Aramco IPO to go ahead by early 2021GMT 19:01 2018 Thursday ,04 October
LEAD S. Korean firms offer aid for quake-hit IndonesiaMaintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Send your comments
Your comment as a visitor