BUENOS AIRES, March 27 Argentina's Senate
approved a government proposal on Thursday to pay Repsol
$5 billion in bonds to compensate the Spanish oil major
for the nationalization of its majority stake in energy company
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.
The compensation proposal, which has already been approved
by Repsol's board, will now be voted on in the lower house of
Congress. The deal is key to Argentina landing investment in
unconventional energy exploration from international oil
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
Among YPF's major challenges is to attract investment to
Argentina's promising Vaca Muerta shale oil and gas
configuration in Patagonia.
(Reporting by Guido Nejamkis; Editing by Sophie Hares)