Repsol SA (REP), Spain’s largest oil
driller, said its board rejected an offer by the Argentine
government meant as compensation for the expropriation of a 51
percent stake in YPF SA in April 2012.
Repsol was offered a 47 percent stake in a joint venture in
the Vaca Muerta shale formation valued by Argentina at $3.5
billion, as well as $1.5 billion toward development, according
to a filing sent to Spain’s securities regulator. The proposal
“does not equal the losses suffered by Repsol,” the Madrid-based company said. YPF would hold a 51 percent stake, while
Petroleos Mexicanos SA would own 2 percent in the venture.
Any potential agreement in which the company obtained
stakes in Vaca Muerta “would force Repsol back to Argentina,”
Societe Generale (GLE) analysts, who lowered Repsol’s price target to
17.25 euros from 19 euros, said in a note yesterday.
Repsol has filed numerous lawsuits including ones in Madrid
and New York seeking compensation of $10.5 billion for the
seizure of the Buenos Aires-based oil producer.
“The board of directors of Repsol and its executive team
are pleased to note the interest of the Argentinean government
in a negotiated solution,” Repsol said in the filing.
Jessica Rey, a spokeswoman for Argentine Deputy Economy
Minister Axel Kicillof, didn’t reply to a call seeking comment
on the rejection. Kicillof oversees the country’s energy
policies and has a seat on YPF’s board.
YPF said it had informal talks with Repsol’s shareholders
and denied the government sent an official compensation offer.
In an e-mailed statement, it also said it is open to finding a
negotiated solution.
Shale Reserves
The offer values the Vaca Muerta formation at $42,000 per
acre. Argentina holds the world’s second-largest shale gas
reserves and fourth-largest shale oil reserve, according to U.S.
Energy Information Administration data.
Petroleos Mexicanos, known as Pemex, is a minority
shareholder in Repsol.
YPF’s American depositary receipts gained 2.6 percent to
$14.50 at close in New York. The ADRs earlier rose as much as
5.2 percent to $14.87, the biggest intraday increase since May
29. Repsol’s ADRs added 1.6 percent to $21.10.
To contact the reporters on this story:
Patricia Laya in Madrid at
playa2@bloomberg.net;
Pablo Gonzalez in Buenos Aires at
pgonzalez49@bloomberg.net
To contact the editor responsible for this story:
James Attwood at
jattwood3@bloomberg.net