Argentina's state-run oil company, YPF SA (>> YPF SA), is in talks with General Electric Co (>> General Electric Company) to sell a 49 percent stake in its electricity generation subsidiary to the U.S. industrial conglomerate, local newspaper Clarin reported.
A YPF spokesman and a GE spokeswoman declined to comment on Friday. The two companies are partnering on several electricity projects in Argentina, Latin America's No. 3 economy, including plants in the province of Tucuman and near the Vaca Muerta shale field.
Last week, the two companies announced that they had secured $220 million in project financing from Citigroup (>> Citigroup) and Credit Suisse (>> Credit Suisse Group), among others, for two jointly owned thermal power projects.
The value of the potential deal was unclear, and YPF does not publicize the value of the subsidiary, YPF Energia Electrica.
YPF launched the subsidiary in 2013 after acquiring assets from Argentina-based oil and gas company Pluspetrol, which spun off its electric generation business. At the time, the value of the spun-off assets amounted to $485 million, according to a YPF filing.
(Reporting by Luc Cohen; Editing by Jeffrey Benkoe)