Repsol to Sell Assets and Spend More on Exploration MADRID - Repsol, the Spanish oil company, said Tuesday that it would cut its dividend, divest itself of as much as 4.5 billion euros ($5.66 billion) of noncore assets and spend more on exploration as it seeks to rebound from the loss of YPF, which was nationalized by Argentina last month. Repsol was pushed to re-evaluate its strategy after the Argentine government seized YPF, which had been its largest foreign asset. Repsol is seeking at least $10.5 billion in compensation from Argentina, but even if the company wins an international trade ruling it would be a struggle to force Buenos Aires to comply with it. Antonio Brufau, Repsol's president, said Tuesday that he had written to the Argentine president, Cristina Fernández de Kirchner, seeking talks on a settlement of Repsol's claims but that he had not received a response. Repsol said it would set aside 19.1 billion euros for investment over the next four years, with 77 percent spent on exploration and on developing recent oil discoveries. The company said that even without YPF, it expected output to rise 7 percent over the four years, while profit should grow 80 percent, based on a price forecast of $80 a barrel. To help pay for the effort, Repsol intends to sell 4.5 billion euros of peripheral assets over the period. Repsol said it would pay 40 percent to 55 percent of this year's profit in dividends, down from about 63 percent last year. The reduced dividend would bring Repsol's payout in line with those of other European oil companies; it had been among the largest in the industry. Repsol shares closed 7 percent lower on Tuesday. In addition to a legal battle from Repsol, Argentina faces a challenge from the European Union. The European Commission said Friday that it would file a complaint about Argentine import restrictions with the World Trade Organization. That would do little to further Repsol's case, but it underscores European leaders" frustration with what are seen as Argentina's increasingly protectionist and nationalist policies. Repsol acquired control of YPF in 1999 in one of the boldest and most significant forays by a Spanish company into Latin America and held a 57 percent stake at the time YPF was nationalized. Ms. Kirchner's government had accused Repsol of failing to make significant investments in its Argentine unit, which last year made a big natural gas discovery in the Vaca Muerta shale formation. With the loss of YPF, Repsol has sharpened its focus on Brazil and is also pursuing projects in the United States, Russia and elsewhere. In Brazil, Repsol said last week that its Pão de Açúcar offshore project was expected to contain reserves of at least 700 million barrels of light crude, based on preliminary findings. Repsol operates in Brazil through a joint venture with Sinopec, which bought 40 percent of the Spanish company's operations there in 2010. Repsol's explorations in the waters off Cuba have not been as successful. The company indicated Tuesday that it was set to abandon Cuba after an exploration well there came up dry this month. Repsol was among a number of companies leading exploration in Cuban waters, despite difficulties stemming in part from the United States government's longstanding embargo against the Castro administration. Mr. Brufau said Tuesday that it was "almost certain" Repsol would not make further drilling attempts around Cuba. Mr. Brufau did not provide a reason for the decision, but Kristian Rix, a spokesman for Repsol, later said that after the loss of YPF, it made sense to concentrate Repsol's resources on Brazil and other parts of the world where exploration had already yielded results.