Repsol receives offers for Argentine unit

Repsol, SpainÔÇÖs biggest oil producer, has received offers for its Argentine unit from two of ChinaÔÇÖs biggest oil groups.┬á  The Spanish company is considering the sale of YPF, the Argentine company that accounts for two-thirds of its total oil production, in which it has a 75 per cent stake.┬á CPNC, ChinaÔÇÖs biggest oil company by capacity, is reported to be interested in up to 75 per cent of YPF, while rival CNOOC may be interested in a minority stake and a $15 billion joint venture.┬á RepsolÔÇÖs full stake in YPF would be worth around $17 billion (┬ú10.4 billion).  Chief executive officer of Repsol┬áAntonio Brufau┬áis said to want to cut the companyÔÇÖs stake in YPF due to Argentine restrictions on natural gas exports and price caps on crude, which reduce profitability.  Repsol is also seeking to raise funds for production, especially in Brazil, where it plans to invest $1.5 billion in developing deposits.  State-backed Chinese companies are said to be focusing on deals in countries with increased political risk, in order to reduce competition with independent bidders.  Although Repsol has confirmed the offers, no deal has yet been struck. *┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á *