Repsol SA jumped after Spanish Foreign Minister Jose Manuel Garcia-Margallo predicted his government will reach a deal with Argentina over YPF SA, the oil producer’s Argentine unit which was expropriated in April.
Repsol shares rose as much as 4.3 percent to 15.88 euros in Madrid, the most since Oct. 16. The stock traded 15.65 euros at 11:05 a.m. local time.
Spanish officials are holding daily talks with their Argentine counterparts in the search for an agreement over YPF, which President Cristina Fernandez de Kirchner nationalized in April. Repsol, which values its YPF stake at $10.5 billion, is pursuing a claim against Argentina through the World Bank’s investment dispute arbitrator.
“I hope that we have a solution relatively soon,” Garcia-Margallo said in a television interview with Spain’s state broadcaster RTVE. The talks are “on the right track.”
Under the World Bank process Repsol initiated in May, Argentina has six months to negotiate a settlement. Spain last month dropped trade sanctions against Argentina imposed in the wake of the YPF seizure, El Pais reported on Oct. 17.