In a bit there will be a press conference on the door steps of YPF by various government officials and the inside of YPF representative for the Government to accuse YPF, it appears, of blocking the Government's representative from participating in executives meetings, insufficient exploration of oil, etc. This is part of the daily crisis created by the government for, I believe, the elimination of the dividend and to show that YPF is incompetent to run the company. There will not be an official representative from YPF present. http://www.lanacion.com.ar/1450990-inminente-definicion-del-gobierno-sobre-la-situacion-de-ypf
Viewfinder, excellent post that shows what's going to happen over the next year. By the way, I'll respond later to your questions from your previous post.
Here is the story in English on how the Argentine Government is daily escalating the war with YPF:
Argentina's YPF Turns Government Officials Away From Board MeetingFont size: A | A | A1:20 PM ET 2/23/12 | Dow Jones By Taos Turner
Of DOW JONES NEWSWIRES
BUENOS AIRES (Dow Jones)--YPF SA (YPF, YPFD.BA) on Thursday denied government officials permission to participate in a board meeting at Argentina's biggest oil and gas company, in the latest skirmish between President Cristina Kirchner's administration and the energy sector.
Roberto Baratta, the government's representative on YPF's board, tried to enter the meeting accompanied by Political Economic Secretary Axel Kicillof, Energy Secretary Daniel Cameron and Legal Undersecretary Rafael Llorens.
"Given the company's statutes, YPF let them know that only the board's accredited representative could sit in on the meeting and asked the rest of the delegation to wait in the building until it was over," YPF said in a statement.
YPF said it offered Kicillof, Cameron and Llorens an opportunity to meet with Chief Executive Sebastian Eskenazi and Antonio Brufau, president of YPF's controlling shareholder, Repsol YPF SA (REP.MC, REPYY), after the board meeting. But the officials declined the offer and left the building.
A spokesman for the Planning Ministry, which oversees the energy industry, couldn't be reached to comment.
The state news agency Telam presented the story in a different light, saying YPF had also denied Baratta access to the meeting.
"This is now a legal issue," Kicillof was quoted as saying by Telam. "They're going to have to explain their motives and show what it is that the company doesn't want to show or discuss."
The conflicting versions of events come amid increasingly tense relations between the government and the energy sector.
YPF shares still haven't recovered from a slump triggered by last month's report in a pro-government newspaper that the administration might nationalize the former state-run firm.
Government officials have accused YPF and its peers of investing too little in exploration, production and refining. YPF denies the charges, saying it invested $3 billion in 2011.
But a lack of investment in refining capacity forced Argentina to import $9.4 billion in fuel last year to supply the domestic market, Kirchner said in a recent speech.
Planning Minister Julio De Vido recently said the government will force oil-and-gas companies to produce at full capacity and follow new operating guidelines.
Last week YPF said it was having trouble obtaining foreign currency to pay for fuel imports and that this could jeopardize its ability to supply the local market. But Energy Secretary Cameron criticized the company, saying YPF is responsible for its foreign exchange and import problems.
YPF sells more than 60% of the fuel used in Argentina.
The company's shares were recently 0.6% lower at ARS158.50 on the local stock exchange.
-By Taos Turner, Dow Jones Newswires; 5411-4103-6728; email@example.com
> Dow Jones Newswires
Copyright (c) 2012 Dow Jones & Company, Inc. Disclosures
The situation is farcical. The government will achieve nothing by blanket bullying of the entire business community... this all looks really nutty from the outside looking in.
There has to eventually be some kind of public reaction to what the government is doing. Or business people must be consider what they can do to form an organized resistance of some kind, don't you think?
Don't you just love this drama! YPF is calling the govt's bluff and maybe they have seems to run out of "logical" ways to punish YPF (maybe) with the exception of obviously keep running their mouth on this public smearing campaign. Sure the govt is in the more powerful position but their lack of common sense have been demonstrated time and time again as it shows with the denial of YPF's energy import request.
They're policies and political stances are very outdated and that just a sight for sore eyes for investors when there better investments out there and other governments with a much more open arms for foreign capital.
At this point, their prides are hurting their check book (for both sides, more so for govt) while gas prices keep climbing and the only way out is...free market. But we'll have to do with extend and pretend for while a longer.