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Repsol Demands $10.5 Billion From Argentina (And Argentina's Counteroffer)
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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Wow. Back to old Latin American Socialist/Marxist nationalization days.
Viva Liberte!
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
Time to send in the Armada... Are the Nina, Pinta, & Santa Maria in dry dock at the moment?
http://translate.google.com/#en|zh-TW|All%20your%20base%20are%20belong%20to%20us.%20
"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."
...."you and your whole fucking family"....
Great line!
time to break out those funny looking conquistador hats...
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.
Under "race" on my driver's license it says "redneck"
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
MANY COUNTRIES HAVE NATIONALIZED OIL.
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.
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.
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?
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?
Give Obama another 4 years, and you'll likely see the same thing here.
History teaches:
The YPF oil privatization scam under Menem.
Watch this documentary and learn more of the true history.
http://topdocumentaryfilms.com/argentinas-economic-collapse/
Great film, and is probably the last time a true peoples overthrow happened that was not on the NWO script.
Send in the Spanish Armada....Teach those peasants a lesson...
Continue pushing the glories of a service based economy.....
The Argentinians need the money and so they decided to take it.
One Spanish politican said it best regarding Kircher;"the woman has the appearance and personality of a third rate whore".
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
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.
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.
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.
Not so well played in Sudan, so far...http://libya360.wordpress.com/2011/10/17/u-s-deploys-special-forces-mili...
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.
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 ... »
http://hat4uk.wordpress.com/2012/04/17/repsol-everything-is-a-weapon-3012/
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!
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.
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)
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 bidder...it 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.
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?
"the chinaman is not the issue here.... We're talking about unchecked aggression..."
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.
Regards,
Argentina
Exhibit A
http://205.254.135.7/EMEU/cabs/Argentina/pdf.pdf
Spain has 2 Aircraft Carriers
China and Argentina have zero
Come on WAR!
http://www.telegraph.co.uk/news/worldnews/asia/china/8959279/First-satel...
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.
https://www.gdbiw.com/
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.
Old like the G H W Bush? Or old like the JFK or Ford (under construction)? All carriers.
Your comment is ridiculous.
Don't forget the carrier REAGAN
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.
And it's diesel powered!
Actually they DO have a second carrier...and you can rent a suite:
http://www.guardian.co.uk/world/2011/aug/10/china-aircraft-carrier-luxury-hotel
BTW, when is Clinton getting his own carrier? Oh, wait, he IS a carrier...nevermind.
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
China actually feels that Argentina was historically a territorial possession of China. Like Tibet, the Spratleys, Kashmir, Taiwan, Japan, Siberia, ...
"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.
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.
China has its own problems. Electrical production then water, in that order.
Gotta pull out Roget and see if leverage is synonymous with bombs.
No it's much more CLEAVAGE, that's what iit is.........
Add Barroso into the mix and You have serious amount of dead weight there.
"The European Union signalled it would throw its full diplomatic and economic weight behind the Spanish government"
The Argentinians are rolling in the streets over that one.
The full economic weight of the European Union consists of tons of counterfeit Euros. I guess they could bale them together and drop them from planes over Argentina. Make those bales big enough and you could do some damage.
don't cry for me Argentinaaaaaaa
"They are illusions
They are not the solutions they promised to be."
http://www.youtube.com/watch?v=e7Ns1U0OnE8
Well it worked in Venezuela...
When does Argentina call home all its hard-earned national tungsten reserves from BOE? They can relay it via the Falklands.
"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"
It's a real buzz-kill when the rules are changed on you in midstride, isn't it?
he should talk with O'buttslam
We've always been at war with Eastasia.
And queue the resource wars....
This reality show is starting to get really good. I can't wait for the season ending episode.
There's always a BIG surprise to keep us all hanging around until the next cycle season.
A cameo appearance of Fran Drescher in a thong singing lullabyes.
I was thinking more along the lines of this.
"That's right: as the broke serfs fight amongs each other for the scraps in a world becoming increasingly lawless, China wins again."
China never was too fond of gunboat diplomacy and vowed (eventual) revenge. Now it's being served up on a platter. Enjoy and a hearty salute to the new Empire Of The Sun.
http://en.wikipedia.org/wiki/Gunboat_diplomacy
Suckerfish. Every time the shark wants to eat the remora gets a meal. Only now do Anglos get it, sadly for them multi-decade trends don't reverse overnight.
Except that the last "Empire of the sun" was Japan.
Which was a militaristic expansionist Imperial Empire.
So is Messi leaving Barcelona yet?
repsol is now S.O.L.
Socialism in action - theft! Besides, why does spain care about oil? I thought all of those solar panels would save them.
Specially_designed_proprietary_bull_operated_treadmill-produced kinetic energy.
You are welcome.
>> Socialism .. solar
+ 2 for getting in two talking points. Any chance you could rewrite it and try to fit in something about a birth certificate?
Iran banned oil sales to Spain and now this. Spain is going down in flames or maybe just like a rock since they have nothing to fire up.
This will work until they start sabotaging rigs...
Argentina is a pederast.
http://www.upi.com/Top_News/Special/2011/12/02/Argentina-draws-Spain-int...
The Peronistas are back - hard to believe Argentina was once the 5th richest country in the world.........
from the WSJ comments yesterday on the news:
The following is a well-known joke in Argentina:
When God created the world, He gave Argentina an abundance of natural resources, so much that the angels complained saying, "This not fair, why should Argentina have more resources than other nations?" To this God replied: "You do not understand my plan. Yes, Argentina will have an abundance of natural resources, but I will give the country incompetent leaders, so that the people would not be able to use of all their resources." The angels smiled in agreement.
Is all joking so somber and somewhat tragic in the Land of Silver?
It should be noted that there is another player in the background here.
Here’s my offer Senator Geary, nothing. And I expect you to waive the gaming license fees.
Al Pachino, the Godfather Part Deux
Holy shit...you fucked up the quote, misspelled Pacino's name, and gave the movie a different title. You must work in the SEC.
"You'll get nothing & like it"
~~~
Judge Smails
Ha, very first thing I thought of when I read the article.
http://www.youtube.com/watch?v=0f6l1QljpMo
$50 bucks says the Smails kid picks his nose...
Fifty bucks more says he eats it.
Spain needs to organize equip and ship it's 30 odd percent unemployed youths over across the pond and roll old school.
If GB wanted to stir up some shit, they should rent the Falklands to Spain for a couple of years. That way the Spanish could base out of there.
*sniff* ...ahh, brings back happy memories, of days spent on the Peninsular.
You might be able to screw the Spanish, but careful what you wish for in the ChiComs.
http://vegasxau.blogspot.com
well done, throw out the slave masters, or you end up in the noose of their own making
If I was Argentine I'd say, "Fuck You" too to spain and the rest of Europe; they basically stole the whole damn continent in the first place; and , have been living like kings ever since.
Next up, the telecommunications giant.
It'd be a lot easier if Spain wasn't the only country, with which Argentina has/had a trade surplus.
Smooth move by the Kirchner clan and its kamikaze nationalistic populsim-like politics.
According to a trial balloon floated in Argentine newspaper La Nacion, "la valuación total de la compañía 'no superaría los U$S 4000'."
Read it for yourself, the final sentence in this article:
http://www.lanacion.com.ar/1465712-ypf-recuperada-euforia-en-diarios-k-escenarios-sombrios-para-los-demas
Surely the writer meant 'U$S 4000 million' -- i.e., $4 billion as we would say. But ... I COULD BE WRONG!
Too frigging slow, I bow before Francis' fast fingers.
You still have dibs on the obvious comeback to the 14:13... It's still up for grabs...
bomb them **ckers i say
It'll fix the unemployment rate
Move HQ quickly to Falklands. Claim them in the name of Eva Peron. UK will sail on down and get your shit back, no charge. Go Repsol!
I'm thinking that Argentina's view is a bit short term I'd rather have the devil you know than the devil you don't. My feeling is that when it comes to jumping in bed with China they are't going to give Argentina the luxury of jumping out until they are through with them.
you haven't really been fucked until you've been fucked by the chinese. I speak from experience
Serious people enter through the back door quite often. Haha.
Timmay likes it
Argentina's star may turn RED....
As a Brit I find this highly amusing. for the past 30 years or so much of 'PC' Europe has passivley supported Argentina in their Falklands claim - some more than others, mostly the more Latin Euro countries.
Now, it seems, only Blighty will actually have the only 'proper' leverage in the region - now the boot is well and truly on the other foot.
Falklands, part 2?
I'm thinking the UK will maintain an 'honourable neutrality' in all this - and by way of that will extract some sort of renunciation (or much,much more watered down version of) of Argentina's claim to sovereignty.
By that, we'll have made lots of nice new friends in S.America (they were beginning to stack up behind Argentina just recently..) & maintained a virtuous role in Europe by claiming the last thing we want to do is interfere
in another country's affairs etc. etc.
Doubles all round I think chaps?? arf Arf..
Jeez ~ When they put up that "Zombie Apocalypse" safe zone map here on ZH the other day, the Falklands were looking pretty good... Now I'm not so sure...
"No one expects the Spanish Inquisition!"
I suppose they will threaten Christina with "the comfy chair" treatment.
When you ain't got nothin', you got nothin' to lose.
Bob Dylan
http://www.youtube.com/watch?v=cLiLSRKms30&feature=related
...That's right: as the broke serfs fight amongst each other for the scraps in a world becoming increasingly lawless, China wins again...
The Argentinian leader has understood how the Pax Americana system functions; especially in the strategic field of Hydrocarbons; you take what's yours, even when its not yours...and screw the legalese. Is she a local Oligarch? Most probably...
Its time that Gabon, Nigeria, Congo, Angola, throw out the international clique that bleeds them for forty years via the Oil transnationals, throw out the local Oligarchs, and open their markets to new players, keeping their ownership secure. And its time that Libya recently integrated to the international club, after having been milked by local Oligarch, does the same.
The tragedy is that the third world oscillates between international Oligarchs and Local Oligarchs; never the people and fair sharing of the oil rent. Look at Algeria and Iran, both independent both owned by local theocracy or ex-army oligarchs. The age of small man's governance has not arrived.
As for china winning, its the new champion of the new international world order; the end of Pax Americana is it pointing its nose five to ten years ahead of schedule?
We need TRAV here to tell us how that's not possible...
Falklands redux, anyone?
Apologies to those that tipped to it first, but I went to so much trouble to log in...
+1 for the name.
Like this scene from Animal House:
Do you mind if we dance with your dates?
Otter: Why no...go right ahead.
Actually it was "Do you mind if we dance wif yo dates?"
When you do a deal with the Devil...the Chinese..beware..if you think you will nationalize their investment...they will send 2 million troops to your front door to show you the right way to do business with the Chinese....beware the Dragon
Who would downvote that? Nationalize on Spain, and they send a snappy lawyer to the world court, while you LOL. Nationalize in China .... Has anyone ever actually tried this? Beuller?
So, Rockefeller still wins? If I remember correctly, the ratlines of IG Farben lead to the Argentine government...
The Dude minds.
We in the US can poke fun at Argentina but he who laughs first.....
Don't think this can't happen here in the good ol' USSA.
Nat Gas restrictions and controls first. Whole Energy nationalization next, then banks, agriculture - possibly airlines.
Xie Xie for listening Comrades.
Already happening
http://www.shtfplan.com/headline-news/executive-order-federal-government-to-take-control-of-domestic-natural-gas-production-epa-set-to-move-within-one-week_04162012
Does this count as speculation?
China will offer pay Argentina in gold. Argentina pays Spain in pesos ....receives gold.
See, Socialists really do know the value of things.
Perhaps the British can now use Spain as a forward operating base, before they fly over and bomb the shit out of the Argentinians for all their jibber jabber over the Falkland Islands.
The EU's first war. But who to send in first the Ukrainians or the Polacks?
If shit gets really tough, they'll get the UN to send in the Canadians.
Spain will offer a big dilto to Mrs Kirchner and she will do what ever they want.
This strategy would never work on my country (Brazil) because our female president is a lesbo.
Than we would send over Mata Huma
China doesn't win. China wants YPF because it needs oil. Argentina had to import billions of dollars of oil leading to a large account deficit - hence their desire to takeover YPF so that ARGENTINA - NOT CHINA get the fruits of the labor. China will need to look else where to get their unending thirst for oil.
stateside
Argentina is obviously getting sick and tired of being raped and pillaged by Europe and wants to take control of their own assets. Imagine that. Go figure.
You mean so that the socialists in ARG can rape and pillage themselves?
At least with REP they will be able to get oil/gas out of the ground efficinetly and sell it for higher revenues on the open market.
Do you think that top end oil engineers are going to stay in ARG to get paid in increasingly worthless pesos?
Think beyond your base Hierarchy of Maslov needs...doomkoff.
you don't know anything about Argentina and how foreign oil and gas deals are typically structured
History teaches:
The YPF oil privatization scam under Menem.
Watch this documentary and learn more of the true history.
http://topdocumentaryfilms.com/argentinas-economic-collapse/
Maybe US State is still pissed about that little deal Repsol made in Iran.
http://www.pennenergy.com/index/petroleum/display/283439/articles/oil-gas-journal/drilling-production/iran-repsol-ypf-shell-ink-10-billion-south-pars-deal.html
Hillary calls Fernández de Kirchner and tells her the US has got her back, and voila - Cristina tells Repsol to get fucked!
Interesting take. Indeed that would be consistent with the Empire's deliberately attempting to control EU; in this case Spanish energy needs.
Bottom Line!
Spain Kicked Argentina when Argentina was Down..
now Argentina is Kicking Spain when Spain is Down!
this is NOT! hard to figure out!
there is no need for experts!
a LOT! more of this will be going on!
the 3rd World! who reached out to those who pretended NOT! to be 3rd World.. like Spain.. even though Spain was 3rd World with some window dressing on the books! will be reaping what they have sowed! PERIOD!
as far as the CDS and BULSHIT !Talk.. who cares! Crème. ALWAYS! Rises to the top!
Neither Argentina or Spain are Crème!
How many Oil co’s in Africa had to go Black or else? Or some other bullshit demand? I will say More of the same is coming! The more the World destabilizes the More America will shine like Gold (no Jew rocks need apply for any of my analogies going forward, ever again!)
Hello to all you great people here.
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Please, if you are not maxed out, please give generously from your heart to help Ron Paul in this money bomb. We are asking this because he is not getting the help he needs now. It would only take one millionaire to make history here and donate hugely to his campaign. The one group of people that can save his campaign are here on ZH.
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Get on the side of the real winner and the real American choice for President.
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Maybe Spain will invade and take over Argentina and then Messi can play for Spain and finally win a major international competiton on the senior level...
If they nationalize their oil and gas then they temselves need to cough up the investments and install and manage the technology. If they can't do that then they need to swap one foreign country (Spain) managing their oil and gas for another (China). Gee, smart. Has done miracles for Africa, NOT.
Spain looks too weak now to act alone. But with support of the EU they could hit Argentina hard with boycotting imports. For instance, Argentina is a very large biodiesel exporter to Europe. With biodiesel producers in Europe suffering from imports for years, it should be easy to get support for a boycot from other EU member states.
Rich as an Argentinian.
That Kirchner bitch is really pissing off a lot of people, proving the the manufacturing industry that country is best at is making enemies, but that is what you get when you put someone about as emotionally mature and in touch with reality as Khloe Kardashian or Paris Hilton in charge of a country. Didn't Castro nationalize American corporate property (mostly oil company assets) just before he became a hardline communist allied to the Soviets? Argentina is such a cool place in so many ways, but the Falkland Islands are not theirs and neither are the assets of Repsol.