Argentine overreach

25 November 2013 By Christopher Swann

The energy group has surprisingly rebounded since Argentina confiscated Repsol’s stake 18 months ago. The shares have doubled and output is rising. But that doesn’t justify going shopping. YPF needs capital for its $37 bln shale project more than it needs additional wells.

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Apache is in talks with Argentina’s state-controlled energy company YPF about a possible sale of its assets in the South American country, sources told Reuters on Nov. 22.

U.S.-based oil and gas Apache has stakes in about 25 fields in Argentina. In May the company - which also has oil and gas operations in Egypt, Australia and the North Sea - announced plans to sell $4 billion of assets to cut debt and shore up its balance sheet and share price.

A source familiar with the matter in New York and an oil industry source in Buenos Aires, both of whom asked not to be named, said Apache and YPF were talking about the possible sale of at least some of Apache’s Argentine investments.

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