Argentina’s Senate voted in approval of Argentina President Cristina Fernandez de Kirchner's bill to expropriate YPF SA, and the Lower House of Congress is expected to vote on the measure next week. YPF was a state-run company until it was privatized in 1999.
Kirchner asked Congress to renationalize YPF by expropriating 51% of it from Repsol YPF SA, which holds 57% of the company. She has said YPF underinvested in exploration and production, forcing Argentina to become a net energy importer.
Repsol has vowed to take legal action, saying YPF invested about $3 billion in 2011 and that the company was the biggest investor in Argentina’s oil and gas industry.
“The unlawful expropriation of YPF does not affect the growth capacity of any of Repsol’s businesses outside Argentina,” Repsol said (OGJ Online, Apr. 17, 2012).
The Argentina Senate voted 63-3 in favor of expropriating YPF with 4 members abstaining from the vote.