Oil & gas round-up: Repsol board backs preliminary YPF deal

on Nov 28, 2013
Updated: Oct 21, 2019

iNVEZZ.com, Thursday, November 28: Spain’s Repsol (MCE:REP) plans to start negotiating the final terms of a settlement with Argentina over YPF SA (NYSE:YPF) after the company’s board backed the preliminary deal. Repsol’s share price has advanced marginally in Madrid trading today while YPF’s share price closed nearly two percent higher in New York yesterday.

ExxonMobil Corp (NYSE:XOM) has agreed to sell a 25 percent stake in an Iraqi oilfield to PetroChina (HKG:0857) for an undisclosed amount. ExxonMobil’s share price closed 0.50 percent lower on the NYSE yesterday, and PetroChina’s share price shed nearly one percent in Hong Kong trading today.
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**Repsol to start talks with Argentina over YPF settlement**
Repsol said yesterday in a statement that its Board of Directors had reviewed, and “views favourably” the agreement, announced by the Argentinean government, relating to the compensation of 51 percent of YPF. Reuters quoted unnamed sources familiar with the matter as reporting that the deal was worth $5 billion (£3 billion), about half the amount Repsol was initially demanding after Argentina seized its majority stake in YPF last year.

Repsol said in the statement that it had “decided to start in due course conversations between its teams and those of the Argentinean government, with the objective of finding a fair, effective and quick solution to the controversy”.
President Cristina Fernandez de Kirchner’s government seized Repsol’s 51 percent stake in YPF in April last year after saying that the Spanish company had not invested enough. Repsol, which was seeking $10.5 billion in compensation, had filed international arbitration claims to block the development of YPF’s assets.

Bloomberg quoted sources as reporting that Repsol has hired Deutsche Bank to advise it on the settlement with Argentina.
**As of 13:56 UTC, buy Repsol shares at €19.31.**
**As of 13:56 UTC, sell Repsol shares at €19.30.**
**On November 27, buy YPF shares at $31.00.**
**On November 27, sell YPF shares at $26.66.**
**ExxonMobil sells Iraq oilfield stake to PetroChina**

Reuters today quoted Iraq’s deputy prime minister for energy Hussain al-Shahristani as saying in a statement that ExxonMobil will hand over a 25 percent stake in Iraq’s West Qurna-1 oilfield project to China’s biggest energy company PetroChina. West Qurna 1 is located near the Rumaila field run by BP (LON:BP) and PetroChina’s Beijing-backed parent China National Petroleum Corp (CNPC).
PetroChina noted in a press release that its entry into the project would “be beneficial for PetroChina to achieve synergies with its other projects in Iraq”.

Bloomberg quoted Shi Yan, an analyst with UOB-Kay Hian Ltd, as pointing out that PetroChina had “all the expertise in developing mature fields at a relatively low cost”.
“They have several projects in the southern part of the country and collectively they can find a way to deploy their equipment and crew members more effectively.”
**On November 27, buy ExxonMobil shares at $93.93.**
**On November 27, sell ExxonMobil shares at $93.73.**
**On November 28, buy PetroChina shares at HK$9.12.**
**On November 28, sell PetroChina shares at HK$9.10.**
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