REPSOL: Everything is a weapon, #3,012

Will the Falkland Islanders soon be learning Chinese?

With the proposed nationalisation of Repsol by Argentina yesterday, the group’s shares fell 7% to 16.31 euros.

Argentinian Presidentette Cristina Fernandez plans to steal a controlling 51% stake in the company’s YPF division.

It’s about 50% of Repsol group output, and a fifth of net profit. Having previously been a bit dopey for years, more recently Repsol’s YPF has opened up exciting new resources in Brazil, the Gulf of Mexico and Nigeria.

But around 5.30 pm GMT today, China’s nationalised Oilfinder General Sinopec confirmed it was in serious talk to buy Repsol’s stake in YPF for $15B.

So unless I’m reading this unusually badly, a private oilexco operating from Argentina is about to become a Sino-Argentine attempt to ensure that Sovereign powers control oil exploration in the waters off Argentina….just across the way from the Falkand Isles. And that company has big oil interests in Brazil…the main ally David Cameroid is hoping to enlist in order to stop the Beastly Cornbeefers from having their wicked way.

I have seen the future, and it irks.

34 thoughts on “REPSOL: Everything is a weapon, #3,012

  1. Pingback: John Ward – Repsol : Everything Is A Weapon, #3.012 – 17 April 2012 | Lucas 2012 Infos

  2. “If you can look into the seeds of time, And say which grain will grow and which will not, Speak then to me.”

    Well, we’ll see what Spain has to say about El Presidente’s plan and I wonder if Brazil won’t want to nationalise it’s own oil industry rather than letting Argentina have it. Afterall, what’s good for the goose……………………

  3. Absolutely no sympathy for anyone who invests in Argentina and whinges about being done over. That country has clear form and if you ignore that and still invest, then you only have yourself to blame.
    If I was an auditor of any firm with investments in Argebtina, I would recommend a 100% writedown of the invest due to uncertainty about the government.

  4. Which of the following are you anxious about:

    1. The oil company will receive a lump sum for an asset which could be taken away from it for nothing?
    2. The Chinese will be paying a low price to the Spanish company as opposed to them receiving nothing in the Greek scenario?
    3. The Chinese company is an arm of the Chinese government as opposed to a BP arrangement with the UK government?
    4. The Spanish oil company will be taxed by the Spanish government to the benefit of the Spanish people?
    5. The Chinese assets, once paid for, will be nationalised by the Brazilians, Mexicans and Nigerians?
    6. The Chinese are finding ways to reduce their holdings of US$’s?

  5. Resources,resources,resources. It’s all about the resources.
    The bullshit Western theft is about to be called to book and then it’s going to be, who has resources.

    I have a shares bet with Falklands oil and gas, who are about to drill a well around the Falkland isles. Could explode their share price one way or the other if they find a good strike or not, but I bet Argentina will take an ever larger interest in the situation, if untold oil is found. It’s looking good but is a total gamble.

  6. War’s for resources have been going on since the 70’s some kinetic, the majority of the wars have been fought on the stock markets

    • Wars for resources have been going on forever.
      If Peak(cheap) oil is true( warned about in the early 70’s), then more of what is happening in the World makes sense.

  7. It’s interesting that 10 years after Argentina’s debt default it still doesn’t have access to the capital markets. Although its economy has been growing in recent years, that was from a very low point after the earlier economic implosion. Now, due to its unfaltering attachment to socialism, it’s in deep doo-doo again despite being a member of Mercosur. Hence the takeover of Repsol’s Argy subsidiary: YPF…Argy’s running out of money to pay for oil imports and accuses Repsol of not expanding domestic oil production.
    It’s membership of Mercosur – dominant member Brazil – will ensure Brazil won’t help anybody in the West in this fiasco. Both countries have banned UK ships from docking en route to The Falklands. Brazil is a lead driver in trying to get the USD killed off as the global currency and its main trading partner now is China. And it is of course now run by Dilma Rousseff, a lifelong communist and the annointed successor to Lula, himself officially a communist for most of his life. Classic socialist policies are followed in Argy & Brazil: tax & spend on utopian dreams.

    • Alan Milburn was a Trotskyist in his youth, it never stopped him selling out to private healthcare companies.

      Get over your obsession with seeing socialism everywhere.

      Would you prefer to see corporations controlling everything? Oh yeah, i forgot, they largely do.

      • @thebiggpicture: You’ve missed the message in a lot of comments here (read some recent threads) that the underlying cause of the global crises are policies followed by socialist governments, whatever fancy names they might call themselves. A perfect example was Gordon Brown in the UK. Another is the EU elite and its catastrophic consequences on EZ member states. Exposing socialism for its destructive policies (some intended, some unintended) is not having an obsession as you think. You’re having a problem understanding that. It’s time to wake up.

  8. Kit Green
    April 17, 2012 at 8:01 pm

    Large potash deposits in North Yorkshire is far from new news.
    https://en.wikipedia.org/wiki/Boulby_Mine

    It is for Sirius, they are sitting on a massive, well trade-able resource that the World wants/needs, and the share price does not reflect this yet.
    Just information, that’s why due diligence is required. It wont interest all.
    Regards.

    • The Chinese have been in negotiations with Repsol for months this is not a new deal all of a sudden and there are serious concerns that now the Corned Beef Brigade have declared their hand the Chinese will back out. Well thats Reuters take for what it’s worth! Having the Chinese on your side would almost guarantee a successful take over of “our” Falkland Isles would it not. What could Cameron possibly do? Tell the Chinese to take a walk?!

      • If the Chinese have been in talks to buy the Argy subsidiary of Repsol, with the Argies nationalising it, it implies they don’t want China to own it. A bit odd that given the cosy relations between Brazil and China.

  9. I think that qualifies for being a black swan.
    -and a very elegant one too-
    I think a lot of people in the West might have just pooped their pants.
    (rrressspect to the Chinks)

  10. maybe Camoron, in the spirit of European unity, could offer refueling/landing at St.Helena and the Falklands for the Spanish bombers ….

  11. The Argentine PM Christina Kirchner claimed the Spanish oilco failed to develop the oil resources, which it is committed to, thus forcing Argentina to import oil worth $9 Billion.

  12. Former President Carlos Memem sold most of the oil asset of the Argentine state in the 80s and pocketed a nice payoff. Christina is now pulling a “Chavez” and seizing oil asset sold at profit for Menem and his pals. [Venezuala's PDAVSA is a state own company not private anyways; Chavez just took control of it].

    See youtube documentary take explains this:
    Argentina’s Economic Collapse – Part 2 of 12

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