The bill would give the government and the provinces a total of 51% of ownership in YPF, Kirchner said in a speech announcing YPF's expropriation. Of that controlling stake, she added, the federal government will obtain 51% while the provinces will split the remaining 49%.

The bill's passage will require two-thirds support in both houses, Kirchner said. Given widespread public support for state management of the company, the bill seems likely to become law.

Kirchner blamed YPF for declining oil and gas production and said the company is largely responsible for forcing Argentina to become dependent on imported oil and gas for the first time in 17 years. She said a lack of investment in the sector led Argentina to incur an energy deficit surpassing $3 billion last year.

"This situation almost turned us into an inviable country," Kirchner said.

Argentina is the only major Latin American country without a significant state presence in the oil industry. Mexico, Chile, Brazil, Venezuela, Peru, Colombia, Bolivia, and even tiny Uruguay, all boast state-run firms that are important players in their respective oil and gas industries.

The bill calls for YPF's shareholders to be compensated at a value to be determined by a federal tribunal.

Via: http://www.euroinvestor.com/news/2012/04/16/update-argentina-to-expropriate-ypf-share-ownership-with-provinces/11960787