Repsol's board of directors announced Wednesday a unanimous decision of rejecting the US$5 billion noncash compensation offer from YPF. The Spanish oil major said that the rejected deal of the energy firm does not reflect the loss of Repsol.

In May 2012, the Argentine government took control of the 51% of stake of the company in YPF. The government claimed that Repsol underinvested in the company. This sparked a heated dispute between the shareholders of Repsol and Spain.

Several legal suits were filed by Repsol stating that it had losses of about US$10.5 billion. The company said that it is open to out of court settlement provided that it would be given fair compensation. Repsol wanted compensation in the form of cash, bonds or liquid assets.

Argentina proposed a 47% stake estimated to be valued at US$3.5 billion. The proposal was for a joint venture with Repsol to develop the country's vast Vaca Muerta shale assets.