Repsol leaves Argentina behind

Repsol "extinguishes" debt to Argentina though asset sale.
By Daniel J. Graeber Follow @dan_graeber Contact the Author   |   May 23, 2014 at 10:12 AM
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MADRID, May 23 (UPI) -- Spanish oil company Repsol said Friday it sold off its stake in Argentina's YPF and the bonds it received from the nationalization of the state energy company.

Argentine President Cristina Fernandez de Kirchner signed legislation in 2012 to seize the YPF shares held by the Spanish energy company

Repsol said Friday it completed the sale of its assets in Argentina to JP Morgan Securities including the bonds it received as compensation for the expropriation of its 51 percent stake in YPF.

"From the sale of the entire holding of Argentinean bonds, Repsol has obtained a total $4.99 billion in compensation for the expropriation," Repsol said in a statement. "This extinguishes the $5 billion debt recognized by Argentina."

Repsol's board of directors rejected a compensation offer made in June by the Argentine government.

That deal would have given Repsol drilling rights to Argentina's vast Vaca Muerta shale natural gas field and 47 percent ownership in a new company.

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