The national Mexican company Pemex is negotiating with Argentina's YPF about explorations of the Vaca Muerta oil holdings in South America.
Emilio Lozoya and Miguel Galuccio, CEOs of Pemex and YPF, are wasting no time striking a deal. Hardly twenty four hours passed from the time that Repsol's board accepted compensation deal more than a year after Argentina's government expropriated important oil holdings from the Spanish company. Spanish, Argentine and Mexican governments mediated the deal.
The longstanding conflict ends with a quick decision, and other interests will soon come to light. Lozoya, CEO of Mexico's Pemex, which owns 9.8% of Repsol, has openly criticized Repsol management and Antonio Brufau's salary.
Lozoya was reprimanded after he expressed these views during a Repsol board meeting. Ultimately, the alliance between Pemex and Repsol suggests that the Spanish company will get the support it needs.
Despite reiterating his intention to stay with Repsol, Lozoya's negotiation with YPF is an affront. And Repsol's dispute with Lozoya has become a barrier keeping Pemex from getting involved with the Vaca Muerta holdings.
This explains why Lozoya attacked Brufau's management decisions in Parliament, because it was part of the plot that was engineered to get rid of any obstacles to the deal and start conversations with YPF. Lozoya, in a clearly hostile gesture, has not respected agreements from his alliance with Repsol. Once the pre-agreement was approved and the fine print is fleshed out, Repsol should be ready to handle how these developments affect Pemex.
