In a move that was no surprise, the take nationalisation of YPF could now put at risk the investment required to maintain operations.
State-controlled Argentine energy company YPF said it risks having its American Depositary Shares (ADS) delisted by the New York Stock Exchange since it is not complying with all regulatory requirements.
The company stopped complying after the government took administrative control of YPF in mid-April. The president promulgated a law in early May to expropriate a controlling stake in YPF, which was owned by Spain's Repsol.
YPF's ADS price sank more than 6 percent after the news was reported, compared with a 2 percent decline beforehand.
In a filing to the US Securities and Exchange Commission, YPF said it stopped complying with the audit committee requirements as of April 16.
"If we fail to cure this deficiency, NYSE rules provide that the NYSE may initiate suspension and delisting procedures with respect to our securities," the filing said.
"If our ADSs are delisted from the NYSE, there may be a limited market for our ADSs, trading in our ADSs may become more difficult and the price of our ADSs could decrease even further," the company said. "In addition ... our ability to raise additional capital would likely be impaired."
Although experts believe high levels deposits of gas and oil exist in Argentina huge investment is going to be needed to extract it.
With funds running low, it is very possible Argentina will find itself increasingly more reliant on foreign energy supplies, rather than less.