Chile Finance Minister: Argentine Expropriation Won't Hurt Confidence In Chile

Chile's Finance Minister Felipe Larrain ruled out Tuesday the possibility that investors' confidence in Chile will be hurt by neighbor country Argentina's Monday announcement it will nationalize oil-and-gas company YPF SA (YPF).

After a monthslong battle, Argentina President Cristina Kirchner said her country will expropriate Spanish company Repsol YPF SA's (REP.MC) main unit and the largest oil-and-gas company in Argentina, YPF, raising concerns among firms with operations in Argentina.

"We don't believe [the Argentine situation] will raise concerns over Chile," Larrain said.

It is important that Argentina takes footsteps in line "with Argentine laws, international laws and international treaties," Larrain said.

Chile state-owned oil-and-gas company Empresa Nacional del Petroleo SA, or ENAP, has invested over $100 million in Argentina, Larrain said.

The government will support ENAP's interests in Argentina, Larrain added. He said ENAP's situation isn't going unnoticed by the government.

ENAP is evaluating legal steps after the Argentine government revoked in March one of its concessions in the province of Neuquen.

On top of the revoked Canadon Perdido-Campamento concession, Enap's international unit, ENAP Sipetrol Argentina, holds another three southern Argentina concessions, which it is exploring.

-By Graciela Ibanez, Dow Jones Newswires; 56-2-715-8929; graciela.ibanez@dowjones.com

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