VENEZUELA: Oil minister says his country backs Argentina's plans to take over energy company YPF, a subsidiary of Spain's Repsol

Record ID: 344187

  • Title: VENEZUELA: Oil minister says his country backs Argentina's plans to take over energy company YPF, a subsidiary of Spain's Repsol
  • Date: 18th April 2012
  • Summary: ANZOATEGUI, VENEZUELA (FILE) (ORIGINALLY 4:3) (REUTERS) OIL PLANT OIL DERRICK WORKING GENERAL VIEW OF OIL PLANT
  • Embargoed: 3rd May 2012 13:00
  • Keywords:
  • Location: Venezuela, Bolivarian Republic of
  • Country: Venezuela
  • Topics: Business,Economy,Energy
  • Reuters ID: LVA3SXP93M7L99K79DEVMGRN0YCQ
  • Story Text: Venezuela's Oil Minister Rafael Ramirez said on Tuesday (April 17) his country backs Argentina's proposed takeover of the energy company YPF, a subsidiary of Spain's Repsol.
    On Monday, Argentine President Cristina Fernandez announced her administration would send a bill to lawmakers to expropriate a controlling 51 percent stake in the company by seizing shares held exclusively by Repsol.
    The move drew swift warnings from some in the international community and harsh criticism from Spain.
    But Venezuela, where socialist President Hugo Chavez has nationalised almost all the OPEC member's giant oil industry during his 13 years in power, applauded her move.
    "We support and back the decisions by the President Cristina (Fernandez) and we've put ourselves at their disposition to move forward with their political independence," the Venezuelan energy minister said.
    Argentina accuses Repsol of profiting from Argentine oil fields while draining them dry and failing to invest in new exploration.
    "The origin of this dispute between the company Repsol and the Argentine government has to do with the demands of the government to re-invest, to increase oil production, to increase income and dividends produced most of all from the rise in the price of oil," Ramirez added.
    Ramirez's comments came while he was presenting the 2011 report for Venezuela's state oil company PDVSA.
    "In 2011 -- up to December 31, 2011 -- PDVSA had a net income of exactly 124.8 billion dollars. That's is remarkable rise from 2010, when it was 92.9 billion dollars," Ramirez said.
    Chavez is seeking a new six-year term in Oct. 7 elections and has been leaning increasingly heavily on PDVSA, which is one of the world's biggest energy companies and functions as the financial motor of his socialist "revolution."
    In its report, PDVSA said Venezuela's oil production last year was 2.99 million barrels per day (bpd), up slightly from 2.97 million bpd in 2010, and exports rose 2.5 percent to 2.47 million bpd during 2011.
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