What is ypf repsol

Originally the company was arranged so that the state would have a minority stake. The Spanish government created INH in as a public organisation to integrate the various oil and gas companies in which the Spanish state had a controlling interest. These were the first steps in creating what would one day be known as team Repsol.

In Repsol bought The acquisition better positioned Repsol as a multinational company. Then in December Repsol completed an asset exchange agreement with Petrobras, making it the second largest consolidated oil company in Brazil. In Repsol tripled its reserves and production of hydrocarbons in Trinidad and Tobago.

In Repsol began an intensive exploration campaign in which it focused its efforts on and invested in exploring in new areas, with results that enabled the company to change its profile.

As the economy plunged towards collapse in the late s, the government began freezing energy prices. As a result, natural gas is 75 to 80 percent cheaper in Argentina than in neighboring countries, and electricity is 70 percent cheaper.

These below-market prices discourage investment, encourage excessive energy use, and cause trade imbalance. To explain the outrageous dividends paid out, Repsol blamed the scheme the government concocted, in which Enrique Eskenazi, a bank owner who had previously dealt with former President Nestor Kirchner, bought a 15 percent stake in YPF later increased to 25 percent. Because he put up precious little cash, the company and a group of banks lent him the money. YPF then agreed to pay out 90 percent of its subsequent profits in dividends so that Eskenazi could afford to repay the loans.

In addition to these economic arguments, many considered the renationalization a cynical political ploy by President Cristina Fernandez Kirchner. The right to private property is the oldest principle in the legal system. However, in a modern legal system, the law is no longer solely for the protection of private property.

With the dawn of the welfare state, conflicts emerge between those who seek social order based upon ownership of private property and those who seek to restrict private property to ensure the just distribution of wealth. Many legal systems provide justification for interfering with private property, including expropriating private property without compensation to attain social welfare.

From a utilitarian point of view, expropriation of YPF is morally right if the overall wellbeing of society increases. Utilitarianism gives its strongest support to nationalization when it helps promote overall public interest. The difference principle, explicated in A Theory of Justice, holds that a state is just when social and economic inequalities are arranged so they are of the greatest benefit to the least-advantaged members of society.

Nationalization is legitimate if the least-advantaged members of society benefit from this economic framework. Two of the most common types are cross-currency swaps and interest rate swaps.

In addition, the collapse of Repsol YPF on the stock market has turned this guarantee into a worthless scrap of paper. Sacyr Vallehermoso is a company that is in very poor condition, practically bankrupt.

Ultimately, it will be the banks that will have to wind up with the That would be the natural thing. In any case, the stumbling block of settling on the right price will be present in any negotiations. Prices for assets are at rock bottom. This leaves two important questions: On the one hand, does Repsol YPF run the risk of losing its independence as a corporation?

On the other hand, what buyer would be most suitable, given the national interests of Spain and Argentina? That would remove any danger that Repsol YPF would lose its independence. The corrupt dictatorship of Primo de Rivera, which governed the country between and , realized that this state of affairs could not continue if Spain were to industrialize.

The problem haunted successive Spanish governments and later it became more important as living standards and the number of motor vehicles rose in the period of rapid economic growth that followed World War II. By , 65 percent of Spain's oil was still imported.

Rivera's solution was to return to the tradition of state monopoly, a policy that was followed in modified forms by all successive Spanish governments up to In , the dictator issued a decree expropriating all foreign and domestic oil sector companies and placing them under the control of a state agency.

CEPSA , a private company, in The islands had been specifically excluded from the decree. Three state-owned refineries were built prior to the disruptions of the Spanish Civil War and the Franco dictatorship's diplomatic isolation and armed neutrality during World War II.

Foreign exchange pressures and CAMPSA's continued failure to discover oil on Spanish territory led the Franco regime to relax rules on foreign participation. A law left CAMPSA in control of marketing and distribution, but enabled the government to authorize private and public companies to develop a wide range of activities in trade, industrial handling--especially refining--storage, research, and exploration for production of oil and gas fields.

In practice, the government usually required foreign companies to work under joint participation schemes with CAMPSA or other state-controlled entities. A requirement that both private and public refineries had to sell to CAMPSA continued, and in it was extended to gasified petroleum products. In , the government announced the National Combustibles Plan and it asserted direct control of sales, imports, and production of oil products. The government would determine each refinery's contribution to the national supply.

Each refinery had to offer its product to CAMPSA, which then sold to consumers through its monopoly distribution network. To protect the balance of payments, refineries had to purchase a set percentage of their crude requirements from the Spanish government. This was known as the 'Government Quote' and reached a height of 50 percent in , then declined until it was removed in After wildcat failures, an association of Caltex and CAMPSA made the first discovery of oil in the 'la Lora' concession and produced small amounts of low-grade crude oil in In offshore drilling began, and ten years later joint ventures discovered substantial quantities off the Mediterranean coast.

By the early s five offshore producing fields were in operation. The rapid expansion of the Spanish economy created a 15 percent increase in annual oil consumption.

When the share of imported crude reached 73 percent of the country's total supply in , the government initiated a policy of encouraging more foreign participation to build refineries. It hoped to offset the costs of imported crude with exports of refined products. Shortly afterward, it attempted to cushion the shock of the first Arab oil boycott and OPEC-induced price rises by lowering taxes on products, with the result that only some of the costs were passed on to consumers.

The state retained 72 percent of the shares. An attempt to develop the First National Energy Plan was soon abandoned in and the country was without a coordinated energy plan until Authority for the use and production of energy was dispersed among different agencies, departments, and public companies.

Francisco Franco died in and Spain passed into a new democratic era. In October , the Spanish government and political leaders signed the Pacts of Moncloa, which attempted to establish a consensus for political and economic change. Included were provisions for the reorganization of the energy sector.

According to the plan, a reorganization of public entities was required because exploration had failed to develop.