Madrid...naturally...has reacted angrily to the immediate takeover of Spain's YPF Repsol assets in Argentina...ordered by President Cristina Kirchner.
Top Spanish officials declared that Buenos Aires 'shot itself in the foot.'
Cristina...fresh from storming out before the final Summit leaders' meeting...because of lack of consensus over the Malvinas issue...says her Senate will soon vote on a bill expropriating 51% of YPF.
For the 2nd day...YPF shares fell again in NYC...but only by 6%; they fell by 11% on the first day.
The EU backs Spain..and could boycott Argentine soy and meat.
But the WSJ reports that Spain itself does little trade with Argentina.
As expected...Venezuela supported Kirchner's move...but...Bolivia's Evo Morales is backing REPSOL...because it does business with it.
Mexico's PEMEX...which owns 10% of REPSOL...criticized the takeover.
In 2011...YPF produced 34% of Argentina's oil...production has been dropping for a decade while consumption has soared...forcing fuel imports of $9.4 billion.
Oil production is down 12%...with gas down 2.3%...from 2003-2010. (WSJ)
The YPF nationalization is popular in Argentina.
In November...YPF announced a mammoth shale oil find in Patagonia...making it 3rd in the world in recoverable shale gas...at 774 trillion cu meters.(WSJ)
REPSOL is demanding $10.5 billion in compensation.
It paid $15 billion for YPF in 1999.
There were rumors that China recently was negotiating to buy Repsol's YPF 57% share...for $15-18 billion usd.
Compensation will be determined...by Argentina.