Leading Spanish oil company Repsol on Friday announced it would take a loss of 1.279 billion euros as a result of a writedown in the book value of its stake in its unit YPF, which was expropriated by the Argentinean government in April 2012. Repsol is due to reveal its 2013 earnings next week.
Repsol had valued the 51-percent stake in YPF seized by the government of President Cristina Fernández at 5.436 billion euros. The new value is 3.646 billion euros (5 billion dollars).
Repsol and the Fernández government have reached an in-principle accord on compensation for the YPF stake. Reuters quoted a source involved in the talks as saying a definitive accord will be signed within days, with the payment of 5 billion dollars to be made in the form of bonds denominated in US dollars.
“The important part of this deal is that Argentina recognizes $5 billion of debt to Repsol over the expropriation,” the source told Reuters on condition of anonymity, given that he was not authorized to speak on the record.