YPF leaver domination in the US casts shadows on Argentine shales, FX plan
Eliana Raszewski, Leila Miller, Jorge Otaola
BUENOS AIRES (Reuters) – The dramatic ruling by a US court that ordered Argentina to hand over 51% of its stake held in the state energy company, YPF wants to turn a shadow over plans for the giant Vacamu El Tacher Formation and return to the global market.
US District Judge Loretta Preska said Monday that Argentina must transfer YPF shares within 14 days to partially meet the $16.1 billion court ruling over the nationalisation of the company in 2012.
Market libertarian government Javier Miley said it would appeal the ruling to “protect the national interest.”
The ruling adds uncertainty to Argentina’s plan to turn Vaca Muerta, the world’s second shale gas reserve and fourth-ranked shale oil, into a major global energy-producing region that will help bring in the foreign currency needed to support the economy.
YPF leads the development of Vaca Muerta and is often affiliated with other local and international companies, including Shell and Chevron. Vaca Muerta generates more than 400,000 barrels of oil per day and approximately 70 million cubic meters of gas per day.
“Managing YPF is important to Mairay, which is why appeal is his only option,” said Marcelo Garcia, director of the Americas at New York-based risk consulting firm Horizon Engage. “It should bring about the US dollar that the economy lacks.”
The legal dispute stemmed from the 2012 seizure of 51% YPF shares held by Spanish Repsol without bidding on shares held by minority investors Petersen Energy Inversala and Eaton Park Capital Management.
In 2023, Preska awarded Petersen $14.4 billion and Eton Park $1.7 billion in the same case. The plaintiffs are represented by the litigation Funder Barford Capital, which is expected to receive approximately 35% and 73% of the damages to Petersen and Eaton Park, respectively.
Use it for negotiations
Legal rulings could also run in their ability to capitalize on Argentina’s global market. This is eager to strengthen the nation to strengthen its depleted reserves after years of currency crises, national funding that emit regular budget deficits, and high inflation.
“These unresolved disputes could prevent or block Argentina from returning to the international capital market,” Banctrust & Co said in a memo on Tuesday.
Argentine economist Agustin Monteverde said uncertainty could limit YPF’s own funding and strategic planning.
“Companies with uncertain majority shareholders are in the midst of a crisis. It’s difficult to make a decision,” he said.