Skip to comments.Argentina's YPF oil company runs empty on US tour
Posted on 09/28/2012 11:30:17 PM PDT by Cincinatus' Wife
BUENOS AIRES, Argentina -- Argentina's state-controlled oil company has finished a U.S. and European tour with no new investors to show for it.
YPF President Miguel Galuccio had 40 meetings with 70 businesses and investors in Los Angeles, Boston, New York and London, inviting them to help develop the world's third-largest reserves of shale oil and natural gas.
......Argentina is sitting on a fossil fuel fortune, but needs billions of dollars to produce it, and major oil companies have yet to commit. Analysts blame the government's heavy hand in the market and Grupo Repsol's threat to sue any partner for the $10 billion investment that Argentina seized when it took over the company this year.
(Excerpt) Read more at miamiherald.com ...
....Argentina had nationalized the countrys post office in 2003, the Aysa water company in 2006 and the Aerolíneas Argentinas airline in 2009. Most recently, it had seized the countrys private pension funds, and changed the laws to grab reserves from the formerly independent Central Bank.
But YPF, whose majority stock was owned by Spains Repsol company, was by most standards Argentinas biggest company. In the eyes of foreign investors and most governments, Fernández crossed the line with the takeover, which requires approval of the government-controlled congress.
In an article on the YPF nationalization titled Fernández Mimics [Venezuelan President Hugo] Chávez, the Bloomberg wire agency said that Argentinas similarities with Chávezs policies have increased since Fernándezs re-election in October. A day earlier, the Financial Times had said, Argentina can kiss goodbye being treated seriously again by investors for another generation............ Source
Venezuela signs new oil deals with Russia
Caracas, Sep 29, 2012 (IANS/EFE) Venezuela and Russia have signed a new round of energy-cooperation deals, including an agreement to create a new joint venture between Venezuelan state oil firm PDVSA and Russia’s Rosneft.
The deals inked Thursday also include a loan from Rosneft that will help finance PDVSA’s participation in the new venture - known as Petro Victoria - to develop the Carabobo 2 field, which is located in the massive Orinoco heavy-oil belt in eastern Venezuela.
Rafael Ramirez, Venezuela’s oil minister and also PDVSA’s CEO, and Rosneft’s top executive, Igor Sechin, signed the accord creating Petro Victoria and the loan deal.
“We have many new projects in the future that undoubtedly will bring benefits for the peoples of Venezuela and Russia,” Sechin said.
Russia and Venezuela also agreed to create joint companies to provide construction services for the oil industry and other sectors and a 300 MW power plant fed by petroleum coke from the Orinoco belt.
In another deal, Russian firm Gazprom was formally incorporated into exploration work in the Urdaneta offshore gas project. Spain’s Repsol and Italy’s Eni have been jointly operating that project - one of the largest natural gas reserves in the Americas - during the exploration phase.
PDVSA has the right to take a stake during the project’s development stage.
Separately, Venezuelan President Hugo Chavez hailed the start of production at a heavy oil deposit by a joint venture made up of PDVSA and a consortium of Russian firms.
“What occurred (Thursday) is historic,” Chavez told reporters, noting that oil extracted from the Petromiranda field marked the first time a Russian firm has tapped oil in Latin America.
Early Thursday, the Petromiranda JV began operating in the Orinoco belt, a project Ramirez said he expects will produce 45,000 barrels per day in 12 months.
“We’re moving forward like (Russian president) Vladimir Putin says,” Chavez said.
“It’s been 10 years of intense work in pursuit of our interests. The moment arrived in which Russia had to free itself from that terrible era after the fall of the Soviet Union,” Chavez added, referring to bilateral cooperation in different areas.
“Relations that are more solid every day,” he said, hailing Moscow’s assistance in the scientific and economic areas and its “tremendous support” in enhancing Venezuela’s operational and logistical capacity in security and defense.
Since Argentina stole YPF from Repsol, who would dare to invest in it? If they can steal it from the Spanish they can certainly steal it from you. Who are you going to complain to? An Argentine court?
So the only ones who will invest will be, say, the Chinese or Russians who won’t stand by passively when Argentina tries to steal from them; they’ll make it very personal. Its like borrowing money (its exactly like borrowing money). You can borrow from the bank, all civilized like, and pay it back like a civilized person. But once you’ve shafted the banks a few times the only ones who will loan you money will be the leg-breakers. Don’t pay them and they come knocking on your door with a ball bat.
Kirchner probably thought she was showing the world when she seized YPF. She sold her country down the river.
ha ha, it’s not like borrowing from the bank with the chinese and the russkies.
You’re borrowing from Al Capone. broken legs and all.
Obama and Soros already put it all into Brazil
When the rules are only what someone says they are on any given day, the environment for investment goes straight down the toilet. Major oil companies got bit with Hugo nationalizing interests in Venezuela, and it has happened elsewhere before. Why invest in that when there is plenty elsewhere?
Why people are poor. We have these same or similar policies in Cook County, IL and in every urban area in America. Where and when have they ever worked?