No Repsol row in TT

He held a news briefing yesterday at his embassy at the Tatil Building, Maraval Road, Port-of-Spain. Repsol has no fears in TT with whom it has a fruitful relationship and a very good dialogue, he said.

While making no direct appeal for TT’s support in the impasse, he admitted the briefing was a part of a global diplomatic push by Spain to raise awareness, alongside legal and other strategies. YFP now represents one third of oil and gas production in Argentina. However the Argentine government is refusing to pay Repsol’s claims for US$10 billion in compensation for the forced appropriation.

He related that in a 1999 privatisation, Repsol had bought a 90 percent stake in the near-bankrupt YPF, then lending money to the Argentine firm, the Petersen Group, to buy a 25 percent stake, even as the Argentine government held a tiny golden share.

De Aristegui Laborde said Repsol is Europe’s most important investment in Argentina, even as trade and economic development remains one of Spain’s top priorities. The Spanish government must send a clear sign that the nationalisation is a bad precedent. He gave figures to suggest that YFP has performed well under Repsol. Since Repsol’s 1999 takeover it has invested US$20 billion in YFP, including US$12.6 billion in the past five years, and moreso a record US$3.2 billion last year. Repsol has been the main corporate contributor to Argentina, through its US$6 billion tax payments. Under Repsol, the YPF workforce has been doubled.

YPF had done the first viable exploration of the huge Vaca Muerta oilfield, which is valued at US$13 billion.

De Aristegui Laborde said the Spanish government views the nationalisation move as illicit and irregular, saying that any take-over of YPF must be done according to the relevant by-laws, statutes and regulations. The central issue, he said, was not about the ownership of resources — saying the oil/gas reserves belong to Argentina — but is about respecting one’s legal commitments.

He alleged a “clear-cut harassment campaign” by the Argentine government against one of YPF’s owners, Repsol. Saying Repsol now faces a different standard than the other YPF shareholders, he said the aim is to drive the Spanish firm out of Argentina. The Argentine government must compensate Repsol, he said, while bemoaning that instead that State wants to acquire those shares without paying.