Repsol / YPF: no rush It is a fair bet that nobody wants Repsol to get compensation for the expropriation of its YPF asset in Argentina more than Antonio Brufau. But the Spanish oil group's executive chairman does not need a deal enough that he will accept the first one to come along. A proposal to be put on Wednesday to Repsol's board would give it a small slice of the Vaca Muerta shale field and other assets to a total value of $5bn in return for settling its grievances with Buenos Aires. A settlement will be in Repsol shareholders" interests one day. But not this one. The proposal comes courtesy of Pemex, Mexico's national oil company, and Spain's Caixabank. Between them, they own over a fifth of Repsol and may feel that a settlement would boost the value of their stakes. But the terms of the draft settlement are unrealistic, to say the least. The $3.5bn slice of Vaca Muerta it includes values the whole field at well over $100bn, or $43,000 an acre. US shale fields are changing hands for a third of that. Repsol is seeking $10.5bn from Argentina for the loss of YPF. Of course, Argentina has no money. But Repsol does not need to fold. Since it lost YPF its financial position has stabilised, and production is rising. Its shares are 10 per cent below their level on the day of the expropriation, but they are still at a slight premium to the sector average. It is good that Repsol and Buenos Aires are talking, however indirectly. But where's the rush? Argentina faces congressional and presidential elections over the next two years that could provide a more favourable climate for a settlement. Ideally, it would be in cash that Repsol could invest anywhere but Argentina. That is probably a best-case scenario. In the meantime, Repsol's board should resist being bounced into a deal brokered by institutions whose interests are not necessarily aligned with its wider shareholder base.