Repsol Demands $10.5 Billion From Argentina (And Argentina's Counteroffer)

Tyler Durden's picture

Sure enough, just out from the FT: Argentina will not pay Repsol of Spain what it is asking ($10.5bn) in compensation for nationalization of YPF, says deputy economy min

... but will settle for what it ends up getting: nothing. Of course, in the meantime, there will be a lot of kicking and screaming, but that's great: Risk On - Off markets demand distractions. From the FT: "These acts will not go unpunished" said Antonio Brufau, Repsol’s executive chairman during a two-hour press conference on Tuesday, at which he attacked Argentina’s “revisionism” over YPF’s success, and its energy policy over the past decade." Said otherwise, this aggression will not stand, man. Ok, fine. Here is Argentina's counteroffer.

And since we now know what the true value loss to Repsol is, we can now see why CDS sellers would be even more concerned.

More from the FT:

"The Argentinian president has committed an illegal and unjustifiable act following a campaign intended to push down the share price of YPF and allow expropriation at a low price,” he said. “This is just a way of covering up the social and economic crisis facing Argentina.”


Spain has promised “clear and decisive action” against the move in the areas of trade, diplomacy, industry and energy, and summoned Argentina’s ambassador on Tuesday morning.


Madrid has expressed its confidence that fellow European Union members will support it against Argentina, while Mariano Rajoy, prime minister, is using a previously scheduled trip to Latin America to rally allies.

And it is not just Spain: the EU, best known for nationalizing Greece recently, has also decided to throw its "economic weight" into the fray:

The European Union signalled it would throw its full diplomatic and economic weight behind the Spanish government. José Manuel Barroso, president of the European Commission, said he was “seriously disappointed” by the Argentine move and called on Ms Fernandez to find a “mutually agreed solution” to the stand-off that does not harm Argentina’s business environment.


“We expect Argentinian authorities to uphold their international commitments and obligations,” Mr Barroso said, noting that Buenos Aires has existing bilateral agreements with Madrid to protect Spanish investments in Argentina.

Much more humor pending. In the meantime, guess who is the winner:

Responding to speculation that Argentina had begun contacting Chinese state-owned oil companies in a search for investment in the new YPF, Mr Brufau said: “The Chinese are very serious, and no one serious enters through the back door.”

That's right: as the broke serfs fight amongst each other for the scraps in a world becoming increasingly lawless, China wins again.

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Snakeeyes's picture

Wow. Back to old Latin American Socialist/Marxist nationalization days.

Viva Liberte!

CPL's picture

There's a reason it switch back over to the supply and demand model versus the "we got it and let's use it like it's going out of style" model.


The American empire did that in the 70's.  Turned out really well.  lol

francis_sawyer's picture

Time to send in the Armada... Are the Nina, Pinta, & Santa Maria in dry dock at the moment?

Dr. Richard Head's picture|zh-TW|All%20your%20base%20are%20belong%20to%20us.%20

Buckaroo Banzai's picture

"Senator? You can have my answer now, if you like. My final offer is this: nothing. Not even the fee for the gaming license, which I would appreciate if you would put up personally."

brewing's picture

time to break out those funny looking conquistador hats...

Marginal Call's picture

If you weren't paying attention, there is a rush to take physical possession of what's left.  I find Argentinia's methods to be far more elegant than the Redneck Arabian's.

Levadiakos's picture

Under "race" on my driver's license it says "redneck"

boogerbently's picture

1) Obama augments a 1951 Executive Order which gives him power to take control of any/all US resources.

2) He games the "fairness" doctrine, and ramps up anti-oil-manipulation rhetoric.

3).....Nationalize oil?!?!

It would only hurt that one industry (no jobs lost, just "wealth redistribution" LOL


Everyone except for Chevron/Exxon would be happy, and THEY'VE been screwing us for decades.

GOP wouldn't need to pay more tax,

DEMs wouldn't need to cut spending on social programs'

Deficit would be paid off in no time.

WE could control the price of oil.

I know it's NOT FREE MARKET CAPITALISM, but neither are oil prices in this environment, so, F'em.


Amagnonx's picture

Well - we can hope some sanity prevails and they discontinue the socialism - but kicking out foreign occupations is a good start - even if it is nationalized.

caconhma's picture

The quote of the day: "That's right: as the broke serfs fight amongst each other for the scraps in a world becoming increasingly lawless, China wins again."

I am curious about how soon will Chinese open their foreign subsidiaries in America & EU utilizing the best intellectual minds working on their behalf?


Tristan Ludlow's picture

I am thinking the same thing.  50 square miles of Idaho being sold to China as an economic free zone.  I wounder how much they can buy with their soon to be worthless FRNs?

Gringo Viejo's picture

Give Obama another 4 years, and you'll likely see the same thing here.

anonnn's picture

History teaches:

The YPF oil privatization scam under Menem.

Watch this documentary and learn more of the true history.

phyuckyiu's picture

Great film, and is probably the last time a true peoples overthrow happened that was not on the NWO script.

battle axe's picture

Send in the Spanish Armada....Teach those peasants a lesson...

quintago's picture

Continue pushing the glories of a service based economy.....

Buck Johnson's picture

The Argentinians need the money and so they decided to take it. 

Madrid2020's picture

One Spanish politican said it best regarding Kircher;"the woman has the appearance and personality of a third rate whore".

Au Shucks's picture

This is poetic payback BITCHEZ.  Hope the value of all those buckets of South American plundered silver ya'll just won in international kangaroo court is worth the loss here in your oil "rights".. Eye for an eye, currency for currency

Suck it Spain

JacksBalanceSheet's picture

Wait, are you telling me that after what happened there is still a country willing to invest in Argentina? They must have much more leverage than Spain I guess. 

agent default's picture

The West is getting weaker and weaker, and it shows.  There is a difference between a declining power investing in a foreign country and a rising power investing in a foreign country.  Always has always will be.

AldousHuxley's picture

The West has lost the soft war. everyone including young westerners know that their regimes are corrupt and unjust.

It is matter of time before the hard war of weapons and blood settles the matter.


Sounds like Argentina is switching masters from Europeans to Chinese


Well played China.

Amagnonx's picture

SO far China has acted with great restraint, showing diplomacy instead of force - they have a long history of minding their own business and simply being a trading nation - despite being screwed over during the opium wars.

Perhaps the opium wars taught them enough - and they will continue their policies - I see no immediate threat to anyone from doing business with China.


Though I'm not sure if they are controlled by the western banking cabal or not, the more I see and think - the less likely it seems that China is playing ball with Mr Rothschild, but I am never sure on that one.

bank guy in Brussels's picture

On China actually buying the just-nationalised company from Argentina, per John Ward's 'The Slog':

« But around 5.30 pm GMT today, China’s nationalised Oilfinder General Sinopec confirmed it was in serious talk to buy Repsol’s stake in YPF for $15B.

So unless I’m reading this unusually badly, a private oilexco operating from Argentina is about to become a Sino-Argentine attempt to ensure that Sovereign powers control oil exploration in the waters off Argentina….just across the way from the Falkand Isles. And that company has big oil interests in Brazil ... »

prole's picture

Hmmm.... Argentina knows that Spain and/or any company in Spain is NEVER going to help them in Las Malvinas, so they might as well dump Spain, as useless.

And if they don't take some action somehow, they know UK is going to rape them offshore for whatever oil may be in Argentine Waters, and call it UK territory (Falklands)

So what they need is an Angel, someone who could sweep a bully like UK off their island as a Sunday training exercise. 

And guess who's calling on the phone? Hello? China? Hi I'm so glad you called!

phyuckyiu's picture

If what you are saying is true, and I have no doubt you are on to something, then basically Kirchner just made her country a cool 4.5 BILLION by playing poker with a winning hand. So not only did she avenge her country for Menem fucking them over and selling YPF for pennies on the dollar because of bribes and blow jobs, she just made her country 4.5 BILLION in one week. And the Chinese are not asshole overlords, they won't screw her over anywhere as bad as Europe did. She is FUCKING BRILLIANT.

prole's picture

Let's not be naive here. Menem got the 10.5 billion. How much of that do you thing "the country" got? All "The Country" of Argentina got was their US dollars stolen directly out of their bank accounts.  (Hey that kind of reminds me how the Sheople had their 'Gold lol' Dollars stolen and replaced with their new national (joke) currency too 1933.

And if you think "the country" is going to get that 14 Billion from China, you need to check yourself, that is for Madame K. RHIP

Come to think of it, when Repsol asked for their 10.5 Billion back, K should have correctly told them they had the wrong number, and connected the phone call to Senor Ferrari (Menem)

Antifaschistische's picture

Eventually the Chinese have to do something with their dollars.  This is the natural progression of events.  Their oil will not be sold to the highest will go to China.  If you don't believe in Peak Oil fine, you better believe in Peak Oil (i.e. ongoing declining supply) for Western Civilization because it's very real.

But this game has many innings left.  Eventually the US will do the same thing with it's lumber, cement, silver, gold, coal, copper, etc.

HurricaneSeason's picture

General Electric pays zero in taxes. Most large corporations go to China for labor because Mexico is too expensive, yet Congress will protect the natural resources of U.S. for the American people? Why would they do that? Who would bribe them to do that?

Id fight Gandhi's picture

"the chinaman is not the issue here.... We're talking about unchecked aggression..."

hedgeless_horseman's picture



Dear Spain:

It was always unlikely that we, an Export Land, would constrain domestic consumption to help you, an importing country. 

Please see attached, Exhibit A.







Exhibit A

5880's picture

Spain has 2 Aircraft Carriers

China and Argentina have zero


Come on WAR!

CPL's picture


China has a dozen of them.  Nuclear powered.  Armed to the tits. with all the best stolen tech from all their American and European friends.

Only people on the planet right now that CAN make a ship is China and India.


Last time Europe or the US built a ship was...the 1960's?  70's?  Everything floating is old man, really old.


smiler03's picture

And Italy, UK, Finland, Russia, France, South Korea, Germany, Japan, and many more.

CPL's has to be the "Crappiest Comment Of The Year" in my opinion and at least three morons upvoted his post. Beware of the sheep.

Marginal Call's picture

Old like the G H W Bush?  Or old like the JFK or Ford (under construction)?  All carriers.


Your comment is ridiculous.

Hippocratic Oaf's picture

Don't forget the carrier REAGAN

tarsubil's picture

I'm missing something. You linked to an article on China's only carrier which was mostly built by Russians and is still not complete yet alone functioning with fighters landing and taking off. Either that is tremendously dry sarcasm or you're not the sharpest knife in the drawer.

smiler03's picture

And it's diesel powered!

krispkritter's picture

Actually they DO have a second carrier...and you can rent a suite:

BTW, when is Clinton getting his own carrier? Oh, wait, he IS a carrier...nevermind.

5880's picture

Did you even read your own article?

They have zero! And they didn't build that one, russia did.

I'm pretty sure the US builds ships, lots of them. We have 11 carriers and 9 amphibious asualt ships. Most countries carriers are our AAS!

2 Ford class ships are being built right now

Stuck on Zero's picture

China actually feels that Argentina was historically a territorial possession of China.  Like Tibet, the Spratleys, Kashmir, Taiwan, Japan, Siberia, ...

dracos_ghost's picture

"China actually feels that Argentina was historically a territorial possession of China.  Like Tibet, the Spratleys, Kashmir, Taiwan, Japan, Siberia, ..."

... The United States.


I'm not sure this is a win for China. What happens when Argentina decides to nationalize the nationalization when China invests. Rinse Repeat.


Cognitive Dissonance's picture

Just think of China as the latest winner.

The toilet bowl hasn't completely flushed. Still some turds floating around so there's plenty of time to restock.

CPL's picture

China has its own problems.  Electrical production then water, in that order.

Joe Davola's picture

Gotta pull out Roget and see if leverage is synonymous with bombs.