Antonio Brufau, the president of Spanish oil company Repsol, met with government officials yesterday to negotiate investments in Argentina’s oil and gas market.
Braufau reputedly held an informal conference with the Argentine economy minister Hernán Lorenzino and planning minister Julio de Vido to discuss Repsol’s investment plans.
Close sources have described the meeting as “positive and constructive” and said that both parties will continue to “work together.”
While details of the meeting have not been released, the development of the unconventional (shale) oil and gas deposits is allegedly the main topic under discussion.
Vice-president Amado Boudou has insisted that “it is imperative that Repsol makes full use of its productive capacity and investment potential.”
The truce marks a release in the tension which has mounted in recent days. The controversy arose in response to the government’s accusations that the Spanish company has not allocated sufficient funds for oil exploration nor developed Argentina’s shale oil fields.
Braufau’s arrival in Buenos Aires on Friday coincided with the announcement that the Argentine government will cut fuel and petrol production incentives by 460 million dollars.
Last week, rumours circulated that a nationalisation of the oil firm was under consideration. The government has neither confirmed nor dismissed such a proposal.
Brufau embarked yesterday on an investigation of the company’s figures, along with the Argentine company Grupo Petersen, which accounts for 25.43% of the YPF’s shares. The results of the study will be released to the public in the next few days in the hope of negating the official accusations.