Argentinian oil workers celebrate the 2012 decision of the Kirchner government to nationalize Repsol operations in Argentina. Photo: Verte.tv/File photo.
This past Wednesday, Argentina’s vice president Cristina Fernández de Kirchner accused the Spanish oil and gas company Repsol of having pursued what she called “a predatory policy” in the South American country’s energy sector.
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“I want to share some graphs that demonstrate the predatory policies implemented by the multinational company, Repsol, towards YPF ever since the latter was denationalized,” the vice president posted on social media.
She then presented graphs showing that since Repsol took control of the Argentinian state-owned company YPF, oil production decreased by almost half. From 1997 to 2011, YPF-Repsol’s oil production fell by 44% to 11.3 million cubic meters, and the company reduced its share of the local market to 34%, the former Argentinian president explained.
Tal cual lo planteábamos el domingo en Salliqueló, en ocasión de la inauguración del Gasoducto Presidente Néstor Kirchner, quiero compartir algunos gráficos que demuestran la política predatoria que tuvo la multinacional Repsol en YPF desde que ésta última se desnacionalizó.… pic.twitter.com/Xc64TZlU65
— Cristina Kirchner (@CFKArgentina) July 12, 2023
Furthermore, during the period between 2004 and 2011, gas production decreased by 38% to 10.6 million cubic meters, which represented a loss of 23%, or more than 11 percentage points.
She also pointed out that YPF-Repsol’s lack of investment led to a sharp decline in oil reserves. From 2001 to 2011, YPF-Repsol’s oil reserves fell by 50% to 666 million barrels, and its gas reserves fell by more than 55% to 106 billion cubic meters.
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According to Fernández, the reduction of the country’s gas reserves poses a threat to its energy sovereignty. Despite YPF-Repsol reducing its production levels, the company has doubled its sales by capitalizing on rising prices.
Furthermore, she emphasized that the decline in YPF-Repsol’s production occurred alongside the company’s growing profits.
In 2012, then-President Cristina Fernández announced a pivotal decision aimed at restoring oil sovereignty and reversing the decline in production. She declared the intention to expropriate 51% of the company’s shares, which were held by Repsol, with the ultimate goal of reclaiming state control.
(Telesur)
Translation: Orinoco Tribune
OT/JRE/KZ
