

Argentina burns ties with biggest foreign investor for cash and nationalism - JumpCrisscross
http://www.economist.com/node/21553070

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pitiburi
A worldwide campaign in help of Repsol is in act, and this article is just one
example of misinformation. It's a pretty bad article if you really want to
know what is going on. The truth from the argentinian side goes completely
missing, and after reading it, the idea you get is very very wrong about what
the problem is about, the why and the how. The truth is that the company
Repsol was using YPF for milking its money and transfer it abroad, without
taking any care about sustaining or increasing production. ALL the other
companies with any percentage in YPF will be not bought out, and all of them
were voting against the Repsol plan to not do maintenance on the oil wells.
Repsol just wanted to move the money, speculate and eventually sell its
participation (there were ongoing talks with China). All of that was against
the law, they bought under certain responsibilities and they were not
fulfilling them. The well were not maintained, there was not prospective
works, many many cases of ecological problems, and many WORKING wells were
closed for speculative purposes. But the real reason for the takeover was that
Argentina has being growing a LOT these last years, and they will keep on
growing, so they need a good and cheap supply of oil. But mostly a SECURE
energy supply. And Repsol was using YPF just for moving money, speculation,
and was ruining the many different assets the corporation had. Repsol was
opposed by all the other shareholders within YPF, but having 51% they were
just doing anything they wanted. Well, in a very reasonable move, the country
in need of a stable oil production took again control of their own oil. Sad to
see this type of "journalism" as news in HN.

