Argentinian President Cristina Kirchner announced the nationalization of oil fields.
Private Property Attacked - Authoritarian Argentina is taking over privately owned oil fields
- What business will now invest in Argentina when the government can steal your property?
Argentina sent shock waves through the oil industry by announcing plans to nationalize local oil assets controlled by a Spanish company, in a controversial move that threatens to sour the already troubled relationship between the two countries.
Cristina Fernández de Kirchner, Argentina's president, introduced the new measure to Congress in a bid to recover sovereignty over its national hydrocarbon resources.
Kirchner accused Repsol of failing to produce enough oil through YPF to meet Argentina's energy requirements.
The nationalization comes amid escalating threats against operators drilling for oil off the disputed Falkland Islands.
Kirchner said the price would be set by the national appraisal tribunal and insisted the business could continue to be managed "professionally". She said Argentina was one of the few countries that did not control its own oil.
|Argentina has been making threats against the United Kingdom about the Falkland Islands now that there oil has been discovered.|
The Great Energy Gold Rush.
Oil and gas fields all over South America are drawing attention from Europe, China and the United States.