HOUSTON (ICIS)--The Argentine government has reached a deal with Repsol, under which it will compensate the Spanish energy producer $5bn for the expropriation of its stake in YPF, the company said on Tuesday.
The deal still needs to be approved by Repsol's shareholders and the Argentine Congress.
Argentina’s government expropriated 51% of YPF in May 2012 following a dispute with the Spanish company over under-investment and dwindling production. To date, Repsol has not received any compensation and has threatened legal action against Argentina and foreign companies that do business with YPF.
The agreement represents less than half the $10.5bn that Repsol had been seeking.