The Chamber of Deputies voted 207-32 in favor of seizing 51% of YPF stake, all of them owned by Repsol, will be declared of public interest and subject to expropriation.

The bill, which was approved by the Senate last week, now goes to the President Cristina Fernandez de Kirchner to be signed into law.

The renationalization of YPF, earlier privatized in the 1990s, has been considered by the President on the grounds that Repsol failed to invest enough in Argentina to improve oil and gas production, turning the country into an energy importer.

Fernandez was reported by Reuters as saying in a speech the goal is for YPF to be aligned with the interests of the country.

"When corporate interests are not aligned with national interests, when companies are concerned only with profits, that’s when economies fail, which is what happened globally in 2008 and what happened to Argentina in 2001," she said.

Repsol said, "The unlawful expropriation of YPF does not affect the growth capacity of any of Repsol’s businesses outside Argentina."

With the change in control, Repsol’s stake will drop to about 6% from the current 57.4% though the government has not revealed the compensation for the stake.

Repsol demanded $10bn in compensation from Argentina in exchange for the assets.

Repsol, which acquired YPF from the Argentine government for $15bn in 1999, was valued at $18bn and is said to have demanding compensation basing on those figures.