Argentina enters into an agreement with TOTAL Oil Company within the context of the ICSID

July 18, 2017

The Ministry of Finance informs that, within the context of the normalization of international financial relations, it has entered into an agreement with TOTAL S.A. (“TOTAL”), which had obtained a final arbitration award (generally referred to as “ICSID cases”). This agreement closes TOTAL’s claim and contributes to the restoration of direct investment, in particular from companies coming from France in the energy sector. TOTAL has recently announced investment projects in Argentina (in Neuquen and Tierra del Fuego) for amounts higher than the ones obtained as a result of this agreement.

TOTAL obtained a final award on February 1, 2016. The updated amount with interest is USD 312 million, granted by an Arbitration Tribunal under the International Center for Settlement of Investment Disputes (ICSID) Rules and Regulations.

The agreements establish the cancellation of the amounts through USD 201 million Bonds of the Argentine Nation in U.S. dollars 8.75% 2024 (BONAR 2024), resulting in a nominal haircut of 36%.