The Renationalization of Ypf Under International Law; a Case Study

THE RENATIONALIZATION OF YPF UNDER INTERNATIONAL LAW; A CASE STUDY

Nina van Limburg Stirum

Brouwersgracht 48-1,

1013GX Amsterdam

0621500446

Ninavls@hotmail.com

10127305 Bachelor essay supervisor: Jim Mathis

Contents

THE RENATIONALIZATION OF YPF UNDER INTERNATIONAL LAW; A CASE STUDY

Introduction 3

Chapter 1: Expropriation and Nationalization in general 3

Chapter 2: Nationalization under international law 5

1: Public Purpose 6

2: Discrimination 7

3: Due Process 8

4: Compensation 9

Investment Treaties 9

Chapter 3: YPF; Yacimientos Petrolíferos Fiscales 13

Short history 13

April 2012 14

Chapter 4: Nationalization of YPF under international law 15

Access to the ICSID 17

Application of the law 18

Ad. 1: Public interest 18

Ad. 2: Discriminatory measures 19

Ad. 3:In accordance with the law (Due process) 20

Ad. 4: Adequate compensation 20

Conclusion 23

Bibliography 24

Introduction

On the 16th April 2012 Argentine president Cristina Fernandez de Kirchner stated that her government was going to renationalize 51 per cent of the 58 per cent share of Yacimientos Petrolíferos Fiscales (YPF) owned by Repsol. YPF is the biggest Argentine oil company, since 1999 partly owned by the Spanish multinational Repsol.

After months of negotiations the Argentine government accused Repsol of not investing sufficiently in YPF to maintain or recover reserves. Due to Repsol’s alleged neglect towards YPF the country was no longer self-sufficient in fuel. As result Argentina had to import fuel, at a huge expenditure each year, approximately 9 billion US$.

On the 3rd of December 2012 Repsol filed a complaint against the Argentine government at the International Centre for