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.
Find up to date information on the FTSE 100 and spread betting strategies at City Index
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.