Spanish oil major Repsol's shareholders approved the compensation accord the company reached in February with the Argentine government over the 2012 nationalization of its YPF unit.

The deal, which ends a two-year dispute over the expropriation of Repsol's 51 percent stake in Argentina's largest oil company, calls for Buenos Aires to pay the Madrid-based oil major $5 billion in dollar-denominated bonds maturing between 2017 and 2033.

It also "stipulates guarantees for effective payment as well as the termination of all judicial and arbitration proceedings and the reciprocal waiver of future claims," Repsol says on its Web site.

Repsol and the Argentine government signed the compensation accord on Feb. 27, but it still needed to be approved by the Argentine Congress and the Spanish company's shareholders.

The Argentine Senate gave the green light for the deal this week by a vote of 42-18 with eight abstentions, clearing the way for its final ratification in the coming weeks.

Repsol CEO Antonio Brufau said Friday that the agreement with Argentina means the company can dedicate itself "body and soul" to its day-to-day operations and use the compensation payments to drive growth.

He said Repsol planned to sell the "medium-term" notes as well as divest itself of its remaining 12 percent stake in YPF, saying the company would earn between $6 billion and $6.5 billion through those transactions.

Under the agreement, Argentina will deliver Repsol an initial portfolio of bonds with a face value of $5 billion, the Spanish oil major says on its Web site.

However, if the market value of that portfolio does not amount to at least $4.67 billion four business days prior to the closing of the deal, Argentina must deliver additional bonds to Repsol up to a maximum additional face value of $1 billion, the company adds.

Repsol will not be able to receive more than $5 billion, whether through the sale of the bonds on secondary markets at a price higher than their face value or by holding the debt through to maturity.

In either case, the excess bonds or cash will revert to the South American country.

The debt will be considered to be extinguished once Repsol has obtained $5 billion from the sale of the bonds or through ordinary payment through the bonds' maturity. EFE