OFFSHORE OIL FIELDS
The achievement of self-supply of hydrocarbons is declared by the National Public Interest. Create the Federal Hydrocarbons Council. State of Public Utility and subject to expropriation 51% of the estate of YPF S.A. and Repsol YPF Gas S.A. Sanctioned: May 3, 2012 Enacted: May 4, 2012
The Senate and Chamber of Deputies of the Argentine Nation, meeting in Congress, etc., are sanctioned by law:
From The Sovereignty Of
of the Argentine Republic
Article 1-Declaration of national public interest and as a priority objective of the Argentine Republic
the achievement of self-supply of hydrocarbons, as well as exploration, exploitation, industrialization,
transport and marketing of hydrocarbons in order to ensure economic development with equity
The Commission has been in the process of setting up a new system for the creation of new jobs.
equitable and sustainable growth of the provinces and regions.
ARTICLE 2 °-The National Executive Branch, in its capacity as the authority in charge of the establishment of the policy
in the matter, it will arbitrate the measures conducive to the fulfillment of the aims of the present with the contest
of the provincial and public and private, national and international capital.
ARTICLE 3-Establishment as principles of the policy of the Republic of Argentina
(a) The promotion of the use of hydrocarbons and their derivatives as a factor for development and
the competitiveness of the various economic sectors and of the provinces and regions;
(b) the conversion of the resources of the water resources into proven reserves and their exploitation and the refund
c) The integration of public and private, national and international capital into strategic alliances aimed at
exploration and exploitation of conventional and non-conventional hydrocarbons;
d) The maximization of investments and the resources used to achieve self-supply of
Hydrocarbons in the short, medium and long term;
e) The incorporation of new technologies and management modalities that contribute to the improvement of the
activities for the exploration and exploitation of hydrocarbons and the promotion of technological development in the
Republic of Argentina with that object;
(f) Promotion of the industrialization and marketing of hydrocarbons with high added value;
(g) The protection of consumers ' interests related to the price, quality and availability of
derivatives of hydrocarbons;
(h) obtaining export balances for the improvement of the balance of payments;
ensuring the rational exploitation of the resources and the sustainability of their exploitation for the
exploitation of future generations.
Of the Federal Council for Hydrocarbons
ARTICLE 4 °-Create the Federal Council of Hydrocarbons, which will be integrated with the participation of:
a) The Ministry of Economy and Public Finance, the Ministry of Federal Planning, Public Investment and
Services, the Ministry of Labour, Employment and Social Security and the Ministry of Industry, through its
b) The provinces and the Autonomous City of Buenos Aires, through the representatives who each
ARTICLE 5-The following are the functions of the Federal Council of Hydrocarbons:
(a) Promote coordinated action by the national state and the provincial states in order to ensure
compliance with the objectives of the present;
(b) to be issued on any other matter linked to the fulfilment of the objectives of this Law and to the
fixing of the policy of the Argentine Republic, which the National Executive Branch will submit to
ARTICLE 6-The Council shall meet the absolute majority of its members and shall be chaired and
represented by the representative of the national state that the National Executive Branch designates for this purpose.
It will dictate its own operating rules.
From the Recovery of YPF Control
From the Expropriation
ARTICLE 7-For the purpose of ensuring compliance with the objectives of the present Regulation,
public utility and subject to expropriation fifty-one percent (51%) of YPF Sociedad's estate
Anonymous represented by equal percentage of the Class D shares of that company, belonging to
Repsol YPF S.A., its controlled or controlled, in direct or indirect form. Also, declare
public utility and subject to expropriation fifty-one percent (51%) of Repsol YPF GAS's assets
S.A. represented by sixty per cent (60%) of the Class A shares of that undertaking,
belonging to Repsol Butano S.A., its controlled or controlled.
Article 8 °-Actions subject to expropriation of companies YPF Sociedad Anonima and Repsol
YPF GAS S.A., in compliance with the previous article, will be distributed as follows:
Fifty-one percent (51%) will belong to the national state and forty-nine percent (49%)
the remaining will be distributed among the provinces that are members of the Federal Organization of the
The regulations must provide for the conditions of the cession ensuring that the distribution of
actions between the provinces that accept their transfer is carried out in an equitable manner, also having
for this purpose the levels of production of hydrocarbons and of proven reserves of each of the
ARTICLE 9 °-For the purpose of guaranteeing the fulfillment of the objectives of the present, the Executive Branch
National, by itself or through the body designated by it, shall exercise political rights over the whole of
actions subject to expropriation until the transfer of political rights is perfected and
(a) the economic situation in the Member State concerned;
The transfer of the political and economic rights of the shares subject to expropriation, which the
National State in favor of the provincial states members of the Federal Organization of States
Producers of Hydrocarbons shall provide for the exercise of the share rights corresponding to them
in a unified form for the minimum period of fifty (50) years through a syndication pact
The designation of the Directors of YPF Company Anonima which corresponds to nominate in representation of
the shares subject to expropriation shall be made in proportion to the holdings of the national State,
Provincial states and one representing the employees of the company.
ARTICLE 10. -For the purposes of the implementation of the present and the registration of the ownership of the
rights relating to shares subject to expropriation must be recorded as
Expropriation of such actions is because of public utility and the transfer is prohibited
of them without authorization from the Congress of the Nation voted by the two-thirds of its members.
ARTICLE 11. -The expropriation processes will be governed by the provisions of Law 21,499 and
act as expropriating the National Executive Branch.
ARTICLE 12. -The price of the goods subject to expropriation will be determined as foreseen in the
Article 10 and concordant of Law 21,499. The appraisal will be carried out by the Nation's Court of Tasings.
From Operational Continuity
ARTICLE 13. -In order to ensure continuity in exploration, production,
The industrialization and refining of hydrocarbons by YPF Sociedad Anonima and Repsol YPF GAS S.A.,
as well as their transport, marketing and distribution and the increase of the investor flow, for the appropriate
supply of fuels necessary for the functioning of the national economy in the framework of the
the provisions of the present, the National Executive Branch, through the persons or bodies that
designate, from the entry into force of this law shall exercise all the rights that the actions to
Expropriate confers on the terms of Articles 57 and 59 of that rule.
The National Securities Commission on the day of the enactment of this law will convene an Assembly of
Shareholders, for the purpose of dealing, among other matters deemed necessary and relevant for the purposes of
the present, the removal of all the head and alternate directors and the trade union members and
substitutes and the designation of their replacements for the appropriate term.
ARTICLE 14. -Facultítón al Poder Executive Nacional y al Interventor de YPF Sociedad Anonima y Repsol
YPF GAS S.A. designated by the latter, to take all the necessary actions and collect, up to
Both assume control of YPF Sociedad Anonima and Repsol YPF GAS S.A., in order to guarantee the
operation of companies, the preservation of their assets and the supply of hydrocarbons.
Of the Legal Continuity
and the Management of YPF S.A.
ARTICLE 15. -For the development of its activity, YPF Sociedad Anonima and Repsol YPF GAS S.A.,
continue to operate as open anonymous companies, in the terms of Chapter II, Section V, of the
Law 19,550 and concordant rules, not having any applicable legislation or administrative rules
to govern the administration, management and control of undertakings or entities in which the State
national or provincial states have participation.
ARTICLE 16. -the management of the equity rights corresponding to the shares subject to
Expropriation, by the national State and the provinces, shall be carried out in accordance with the following
(a) the strategic contribution of YPF Sociedad Anonima to the fulfilment of the objectives of the present;
(b) The management of YPF Sociedad Anonima in accordance with the best practices of the industry and the
corporate governance, preserving the interests of its shareholders and generating value for them;
c) The management of YPF S.A. through a professionalized management.
ARTICLE 17. -In order to fulfill its object and the purposes of the present, YPF Company Anonima will go to
sources of external and internal financing and the coordination of strategic partnerships, joint
ventures, transitional partnerships of companies and all types of association agreements and business collaboration
with other public, private or mixed companies, national or foreign.
ARTICLE 18. -This law is of public order and will take effect from its publication in the
ARTICLE 19. -Contact the National Executive Branch.
GIVEN IN THE SESSION HALL OF THE ARGENTINE CONGRESS, IN BUENOS AIRES, AT THE THREE
THE DAYS OF THE MONTH OF MAY OF THE YEAR TWO THOUSAND TWELVE.
-REGISTERED UNDER NO 26,741-
BELOVED BOUDOU. -JULIAN A. DOMINGUEZ. -Juan H. Estrada. -Gervasio Bozzano.
Date of publication: 07/05/2012