Argentine oil company YPF privatization scrapped from reform bill
(Bloomberg) – The privatization of state-run oil company YPF SA is no longer included in the sweeping reforms President Javier Milei is trying to get approved by Argentina’s congress, according to a summary of the legislation circulated Monday by government officials.
The bill, currently up for debate in Argentina’s lower house, was changed after negotiations by lawmakers. The changes were part of a summary of the legislation circulated Monday by government officials.
American Depositary Receipts of YPF were up 0.6% at 10:07 a.m. in New York after falling sharply before the start of regular trading.
Complicating matters is a U.S. court ruling earlier this year ordering Argentina to pay some $16 billion after it botched technical steps during the nationalization. A U.S. judge ruled on Jan. 11 that investors seeking to collect the judgment can start going after YPF’s assets.
It may have been harder to privatize YPF than some other companies since Argentina’s nationalization law—passed in 2012—contains a clause requiring two thirds of congress to approve selling the government’s shares, rather than just a simple majority.
YPF over the past decade has channeled its nationalistic role to successfully spearhead development of Argentina’s Patagonian shale riches, and it is leading plans for pipeline build-outs and liquefied natural gas exports.
Lead photo: Vaca Muetra shale (Source: YPF)
