Ang 51% expropriation of YPF, the largest oil company in the country, celebrated a decade this Saturday. By a law, eventually became lawthe State nationalized the majority shareholding of the company, which at the time was in Repsol’s hands.

the motion sought to reverse the decline in oil and gas production describing the final stage of private governance, led by Repsol and the Eskenazi family.

Rumors about the State’s landing on the YPF began to surface on January 28, 2012. On Monday, the 23rd of that month, each share of the oil company was trading at US $ 41.14. That gave him a market capitalization of more than US $ 16,000 million.

That’s the price the market values ​​100% of the company’s shares.

YPF shares have been at US $ 5 since Russia’s invasion of Ukraine. That move has improved the prices of most oil companies in the West. However, the analysis of the company’s stock market This is approximately US $ 3.4 billion. This is a fifth of its value 10 years ago.

Vice President Cristina Fernandez de Kirchner recently defended the abduction, which took place in his mandate, as a form of validation of his decision. “Now Vaca Muerta is with us,” he said.

The resources Argentina has in energy and food “are almost a spoil of war,” he said in an action on April 2. There he assured that “There is no Vaca Muerta or hydrocarbon sovereigntyIf not for the steps taken, “Our gas and oil reserves should be revalued,” he emphasized.

Dead Cow is the second largest reserve in the world in unconventional gas and the fourth largest in unconventional oil. In 2012, when the YPF was expropriated, the Neuquén formation barely went through its early stages of exploration wells. Technicians have already seen the good quality of the “stone”, but the investment is lacking.

The first millionaire development there was the American-associated YPF Chevron. The agreement – which contains controversial secret clauses – has bolstered Loma Campana since 2013. In 2014, the country’s oil and gas production was the lowest since 2003. However, Vaca Muerta began to bite with some participation in oil production.

The administration of Mauricio Macri promoted the Vaca Muerta table -with a reduction in cost-, while the technology for unconventional deposits became cheaper. At first, it was difficult for oil companies to profit from the wells, because their costs were so high. But because there were more sizes, bigger production was achieved.

In 2015, Vaca Muerta’s share in total production did not exceed a single digit. By 2022, it will already represent almost 40% of production.

Although Argentina has more gas than oil, there is a bottleneck to take it. For that reason, oil production is more dynamic than gas. Ieasa (formerly Enarsa) hopes to have the gas pipeline ready for next winter. The companies say they can double their current production of that liquid.

the trial

The nationalization of 51% removed Repsol from YPF’s control, but also affected the Eskenazi family. That national group controlled 25% of the company, which gradually lost its share because it failed to repay the loans it paid to Repsol with the same revenues generated by YPF.

The Eskenazi family joined YPF for their “experience in regulated markets.” Former President Nestor Kirchner proposed holding company in Repsol, who received it.

Petersen Energía, the Eskenazi company, was founded in Spain. There he went bankrupt. The Burford fund – which focuses on liquidating assets litigation and seeks risky and high -profit stakes – has bought the rights for Petersen’s lawsuits against Argentine State, which owns 51% of the company.

Burford appeared in court in New York, where these controversies were settled. YPF is listed on Wall Street, i.e.e accepts US regulations in this matter.

The lawsuit has been going on for several years, but there is a possibility it is there a sentence in the middle of the year. The claim is based on the fact that the State of Argentina was supposed to make a public offer and paid them for 25% of the shares they had.

Sebastián Maril, one of the specialists who knows the test best, pointed out that one of the experts to consult – Professor Daniel R. Fischel, who prepared an interim report (on behalf of the funds litigating against Argentina) – the country is estimated could pay $ 8.4 billion in Burford (for Petersen’s rights) and in Eton Park, another fund that is the oil company’s third largest shareholder.

Former Economy Minister Axel Kicillof promised not pay for the expropriation of what its former shareholders wanted. Two years after its completion, it reached an understanding with Repsol. Ang The Treasury paid him US $ 5,000 million on bonds with the Spanish oil company.

test details

Last Thursday the term has expired for each party to file a brief inquiry in U.S. court to enter a summary judgment in their favor. This is through exclusive legal arguments, without having to hold litigation.

Burford and Eton’s claim-the US $ 8.4 billion- could go up to US $ 19,665 million with interest payments. The Argentine State and YPF consider this figure to be unfounded, and the method used in calculating the damages is flawed.

Briefs requesting a summary judgment have already been shown, now with subsequent opposition briefs (scheduled for May 26) and the response, agreed for June 23, 2022.

Judge Loretta Preska is not subject to any deadline to issue its decision. The magistrate must resolve whether Argentina and YPF are responsible for what the funds claim from them.

Argentina’s defense understands that, even if they are declared responsible for improper action on Petersen Energía’s rights, the amount to be paid for the alleged damages corresponds to a stage following this process.

Lawyers for the Treasury Attorney General and YPF also argue that the decision, at this time it happens, may be appealed in the Court of Appeals for the Second Circuit. They believe Judge Preska should apply Argentine law, which will establish peso payment, less than those claimed in dollars.

Burford will keep 70% of the proceeds from the litigation. There is 30% of the next income he will share with a partner, whose name is never revealed. Several members of the Eskenazi family testified at this trial.