In parallel, YPF finalized the sale of 50% of its ownership in Profertil, Argentina’s leading urea fertilizer producer, to Adecoagro and the Asociación de Cooperativas Argentinas (ACA) for $1.2 billion. This transition follows the exit of Canadian multinational Nutrien and allows YPF to concentrate capital on upstream shale assets. Profertil supplies approximately 60% of national urea demand and operates a major production facility in Bahía Blanca, with distribution arms supporting Argentine agribusiness logistics. The new ownership structure is dominated by Adecoagro and ACA, which aim to enhance supply chain integration and technological advancement for domestic fertilizer production.
Legal uncertainty looms over YPF’s ownership due to a protracted dispute with the hedge fund Burford Capital, which seeks $16.1 billion compensation tied to the 2012 re-nationalization of YPF. A New York appellate court has temporarily suspended an order forcing Argentina to transfer 51% of YPF shares held by the state, providing temporary relief but leaving the litigation unresolved. The case centers on compensation claims from former shareholders after dividend payments were halted post-expropriation, leading to bankruptcy and a rights acquisition by Burford Capital. Political shifts have injected volatility into the defense strategy, with concerns over sovereign control of YPF.
Overall, YPF’s simultaneous advancement of large-scale LNG infrastructure, strategic asset divestment in fertilizers, and navigation of high-stakes legal risks position the company at a critical juncture in Argentina’s energy and agro-industrial landscape.
This article was curated and published as part of our South American energy market coverage.
