US investors urged to invest in YPF
Days after YPF, the Argentina subsidiary of the Spanish oil company Repsol, was nationalised by the Kirchner administration, Vice President Amado Boudou is in Washington urging American investors to invest in the company.
The government is aware that much investment is needed in the company and they are hoping that major finds of oil in the Patagonian region will attract investors. Meanwhile Repsol has warned investors that such moves may well find faced with legal action if they invest in YPF whilst Repsol attempt to claim compensation for the assets seized. Repsol is demanding $10.5 billion compensation for the seizure a figure the Argentine government rejects.
In Buenos Aires President Kirchner has named 44 year old Miguel Galuccio as the new Chief Executive of Repsol. Galuccio is a former executive of Schlumberger Ltd executive a leading oilfield services provider.
The nationalisation of the Repsol subsidiary has been widely condemned with the European Union supporting Spain. The Spanish government has announced that it will cut biodiesel imports from Argentina in protest at the seizure of YPF. And last week the Argentine government fined Spanish telecommunications company Telefonica $43 million for disruption in mobile phone services lasting a few hours.