Argentina House approves takeover of YPF from Repsol

BUENOS AIRES (Dow Jones)--Argentina moved a step closer to formerly expropriating a controlling stake in its largest oil and gas company, YPF SA (YPF, YPFD.BA), after Lower House committees approved the takeover legislation late Thursday.

The bill, which the Senate approved with broad support from the ruling Peronist movement and most of the opposition in the early morning hours of Thursday, will be debated before the full house next Wednesday.

Passage is almost certain given the Peronists have a working majority in the Lower House and the takeover is also backed by most opposition parties.

Last week, President Cristina Kirchner asked Congress to approve the expropriation of a 51% stake in YPF from Spain's Repsol YPF SA (REP.MC).

Kirchner and her ministers accuse Repsol YPF of not investing enough in its Argentine subsidiary to reverse years of declining output that have turned Argentina into a net energy importer for the first time in nearly two decades.

Argentina's National Appraisal Court will determine what compensation, if any, Repsol YPF will receive. Government ministers in recent days have hinted the Spanish firm might not receive anything if YPF's environmental liabilities are taken into account.