The fallout from the Argentine government's re-nationalization of oil company YPF continues, with EU Trade Commissioner Karel De Gucht promising action soon in support of previous YPF owner, Spanish oil company Repsol, and the company's demands for more compensation from Argentina. "We will soon be moving forward with a response to Argentina's action in the Repsol case," said De Gucht, quoted by Reuters news agency.

Meanwhile, the newly installed CEO of YPF, Miguel Galuccio, has promised a strategic plan within 100 days. He says the objectives are to make YPF the world number one in renewing marginal sites, a leader in the development of non-conventional resources and to further downstream activities (refining, derivatives) for Latin America.

Spanish president Mariano Rajoy, again criticized the move yesterday ( May 7) calling the expropriation of YPF an attempt by Argentina's government to “hide its weaknesses.”

Argentine president Cristina Kirchner officially announced a plan to expropriate the company by taking over a 51 percent share package on April 16. The move was met with popular approval in Argentina, and dismay by the Spanish government and the EU.

YPF (Yacimientos Petrolíferos Fiscales) is Argentina’s biggest company. It was founded in 1922 and was the first entirely state run oil company in the world. YPF was privatized in 1993, when Repsol bought the company.

Liam Lever, liam@romania-insider.com