BUENOS AIRES, March 27 Argentina's
state-controlled oil company YPF told local market
regulators on Thursday that it plans to launch the sale of up to
$1 billion in 10-year global bonds on April 4.
The deal comes as Argentina tries to attract investment to
its vast Patagonian shale oil and gas formation called Vaca
Muerta, or Dead Cow. In a letter to the National Securities
Commission, YPF said the bond issue will be managed locally by
Banco Itau Argentina y HSBC Bank Argentina.
The letter was published just hours after the Senate
approved the government's proposal to pay Repsol $5
billion in bonds to compensate the Spanish oil major for the
nationalization of its majority stake in YPF two years ago.
YPF has been under Argentine government control since
President Cristina Fernandez ordered 51 percent of the company
be nationalized in 2012. Compensating Repsol will be a key step
toward attracting much-needed private investment.
A U.S. Department of Energy report has shown that Argentina
has more natural gas trapped in shale rock than all of Europe, a
774-trillion-cubic-feet bounty that could transform the outlook
for Western Hemisphere supply. The country's shale gas reserves
trail only China and the United States.
(Reporting by Guido Nejamkis, writing by Hugh Bronstein;
Editing by Bernard Orr)