Repsol confirms Argentina asset seizure settlement

<p>The company will receive $5 billion over the seizure of assets.</p>

Repsol has confirmed it has come to an agreement with Argentina over the seizure of its assets.

The oil company will be paid $5 billion (£3 billion), but it had originally been asking for $10 million.

Antonio Brufau, Repsol's chairman, stated that it is a positive move to bring an end to the legal issues. He said: "I think to finally reach a friendly agreement on this contentious issue that has taken two years is extremely positive.

"As far as we are concerned, from a financial point of view, we have started a new chapter where we are stronger."

Repsol will be paid by Argentina using US dollar-denominated government bonds. Repsol will be able to claim these back at any time.

All lawsuits launched by Repsol against Argentina are now going to be dropped by the firm.

Shares in Repsol were up immediately after the announcement, but they had fallen away again later in the morning session today (February 26th) but by 14:08 GMT they were only 0.54 per cent up for the day.

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