Repsol has offered to pay YPF's 2011 dividend in stock, and not to repatriate profits.
Spain says it is rallying international support against Argentina's nationalisation of the oil firm, YPF.
After seeing YPF's fate, Spanish banks, utilities and telecoms firms may also look for the exits.
Such worries have been amplified by Argentina's expropriation last month of YPF, a Spanish-controlled oil firm.
Oil company YPF, Argentina's largest company, has led the way by tying pay to return on capital.
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Her government is taking 51% of YPF, wiping out Repsol's 57.4% majority stake.
Oil company YPF, Argentina's largest company, has led the way in incentive-based compensation, tying pay to return on capital.
She may have visions of an oil boom fuelled by YPF's huge recent finds of shale oil and gas.
Even Argentina has joined in, ignoring threats of reprisals to nationalise a Spanish-owned oil company, YPF (see article).
It says YPF did not invest enough to increase output from its oil fields, forcing Argentina to rely on imports.
Her nationalisation of most of Repsol's share of YPF, an oil company, in April, halted but did not reverse the decline.
Six provinces have stripped YPF of oil concessions, but mostly minor ones.
YPF, a privatised Argentine oil giant, has gobbled up Canada's Bitech, and paid less than a dollar a barrel for its reserves.
Argentina is applying a, let us be polite about this, controversial interpretation of its own laws over the nationalisation of YPF from Repsol.
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Spanish Trade Secretary Jaime Garcia Legaz said the EU would intervene over Argentina's seizure of the controlling stake in YPF from Spanish firm Repsol.
The deal also underscores CNOOC's greater presence in the region, where it must compete with the likes of Petrobras and Repsol-YPF to remain relevant.
Another risk is the threat of nationalization of foreign enterprises, as was recently the case with YPF in Argentina and Red Electrica in Bolivia.
The day after the measure was announced, BBVA slid 6.5 percent in Madrid and Repsol YPF SA, Spain's biggest oil producer, fell 13 percent.
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The La Plata refinery suspended operations as a result, and Argentina's YPF oil company said an emergency team was evaluating how to get it restarted.
As the former state oil monopoly, YPF tugs at nationalist heartstrings.
The Argentine government's recent decision to grab control of the country's largest oil firm, YPF, will scare off the foreign investment its shale industry needs.
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However, the government announced in April that it would nationalise YPF.
Scarabeo 9 is a semi-submersible drilling vessel recently built by Yantai Raffles, which will be on contract by Repsol YPF for deepwater exploratory drilling off Cuba.
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First to use it will be the Spanish oil company Repsol YPF, which plans to drill an exploratory well around 100km (62 miles) from the Florida Keys.
But the Argentine government says it will not back down in its decision to nationalise YPF, which it says is a lawful action taken in the national interest.
Buy the fund and you are buying YPF even cheaper since the fund trades on the New York Stock Exchange at a 29% discount to net asset value.
The fight between Repsol YPF , a Spanish energy concern, and Endesa , Spain's leading electricity provider, for the second-biggest generator, Iberdrola, has ended in a government-sanctioned settlement.
The profits came on a day when a raft of other European companies posted strong profits, including consumer goods company Unilever, Spanish energy company Repsol-YPF and drug-makers Bayer and AstraZeneca.
It is not clear whether the president's aim is renationalisation: she would find it hard to raise the funds, although her threats have depressed YPF's share price by 14% this year.
YPF, Argentina's biggest oil company, was privatised in 1993.
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