Argentina and Repsol reach initial deal

Nov 25, 2013, 9:36 PM EST
Argentina's President Cristina Fernandez de Kirchner talks to newly appointed Economy Minister Axel Kicillof (R) at the swearing-in ceremony at the Casa Rosada Presidential Palace in Buenos Aires November 20, 2013.

Repsol and Argentina reached a preliminary deal on Monday for Spain's oil giant to get paid for the 51% stake in the South American's country's big energy company YPF that the Argentine government seized in May 2012.  The prelimanry accord was reached in Buenos Aires by Spanish Industry Minister Jose Manuel Soria and Argentina’s newly appointed Economy Minister Axel Kicillof along with company officilials and other businessmen such as Isidro Fainé, president of CaixaBank, Repsol's main stakeholder with 12,02% and Emilio Lozoya, chief executive of Petroleos Mexicanos, a minority holder in Spain’s largest oil producer. “The heads of agreement involves setting a compensation amount to be paid with liquid assets and both parties desisting from legal processes,” Argentina’s government said, without disclosing details of the package. The deal needs to be approved by Repsol at a board meeting on Wednesday in Madrid. If passed it could spark a wave of international investment in Argentina's vast Vaca Muerta shale oil and gas formation.