Repsol agrees to sell Canadian oil and gas assets to energy group Peyto For $468 million (433 million euros) as part of its strategy to focus activity in regions it sees as key, as reported by the company to the National Securities Market Commission (CNMV) on Thursday.
Repsol expects this transaction to close on: mid October, subject to customary closing conditions for such transactions, including obtaining necessary regulatory approvals.
The agreement covers all mining rights, facilities and infrastructure related to Repsol’s oil and gas exploration and production operation in Canada; including the assets of the Greater Edson area. 23 barrels of oil equivalent per day (kboe/d), mostly gas.
The company announced that it is refocusing its exploration and production portfolio, with a particular focus on the United States, turning assets to concentrate and consolidate in key areas, preferably OECD countries.
The rationalization of the company’s portfolio was achieved through a series of liquidations at non-strategic locations; this reduced Repsol’s presence in exploration and production from 25 to 14 after the sale of assets. Vietnam, Malaysia, Papua New Guinea, Australia, Greece, Morocco, Iraq, Bulgaria, Ecuador and Russia, Focusing on new developments in key areas such as the United States and Brazil, and making selective purchases in non-traditional assets and US waters.
Repsol announced that it continues its commercial and logistics operations in Canada through its own company. LNG St. John and his jobtrade‘.
The value of Repsol’s existing portfolio of assets and its long-term strategy for its exploration and production business became visible through its partnership with EIG, which bought a 25% stake and valuated the unit for $4,800 million (€4,476 million). $19 billion (17,720.6 million euros) and exceeds the consensus of analysts.
“This agreement has enabled the company to move towards its zero net emissions target through a project that accelerates transformation and reinforcing the multi-energy profile“While reducing leverage and debt, maintaining strong cash flow to finance ambitious growth and attractive shareholder compensation.”
RBC Capital Markets He acted as Repsol’s financial advisor in the sale of assets to Peyto.