The privatization of Argentina's state oil and gas company, Yacimientos Petroliferos Fiscales (YPF), has revived interest in the country from foreign companies.
YPF grew stagnant under state control, and its recovery is planned with the aid of capital, technology, and management techniques from outside Argentina.
The government also intends to clear up debt accumulated through inefficiency in state companies, and this will affect the YPF sale. Economist Roberto Teodaro Alemann, twice Minister of Economy and a contender for the post once again, estimates that debt at $45-50 billion.
YPF is listed on the stock market, although all the shares are still held by the state. A stock tender will be issued in first quarter 1993, leading to completion of the privatization program during 1993.
YPF SPLIT
Eduardo Puricelli, planning and economics manager, Shell Cia. Argentina de Petrolo SA, said the federal government will retain 23% of YPF. Local governments will take another 17%, employees 10%, and the remaining 50% will be offered to the private sector.
YPF has sold production of 239,000 b/d of oil equivalent, said Puricelli, and 60 retail outlets. It will retain 272,000 b/d of oil equivalent, three refineries with total capacity of 345,000 b/d, 2,739 km of pipelines, five tankers totaling 239,000 dwt, and 700 retail outlets.
That leaves 27,000 b/d of oil equivalent production to be sold, three refineries of 64,000 b/d total capacity, 2,357 km of pipelines, a 21 tanker fleet of total 323,000 dwt, 3,100 retail outlets, and the 2.9 bcfd natural gas transport and distribution network of subsidiary Gas del Estado.
GAS SHAKE-UP
Tenders for sale of the three YPF refineries and the crude and products pipelines will be issued in 1993. No timetable has been set for sale of the tankers and retail outlets. But the most important shakeup, said Puricelli, will be the sale of the gas network.
By the end of December, YPF will announce tenders for sale of its Gas del Estado assets. The network will be split into two transmission systems and eight distribution systems serving major cities. Large industrial users will be able to negotiate their own supply arrangements.
Fuels Undersecretary Raul Garcia said Nov. 26 that more than $200 million needs to be invested in infrastructure by the private companies that take on the gas network. Gas del Estado has spent $190 million on infrastructure in readying the gas markets for sale. In all, said Garcia, the government hopes to pay off $600 million of debt through gas privatization.
Copyright 1992 Oil & Gas Journal. All Rights Reserved.
