Spanish based global energy company, Repsol, has agreed to divest a 13% stake in its Eagle Ford project in the United States to its partner Statoil. At the same time, Repsol will acquire a 15% share in the Gudrun producing field in Norway from Statoil. Both transactions are valued at the same amount, so that the effect on the P&L account is neutral for Repsol, and increases Repsol’s positive free cash flow by EUR 500M in the 2015-2017 period, lower capital expenditure, and generate greater synergies and operational efficiencies.
All these effects are aligned with the strategic priorities outlined in the 2016-2020 Strategic Plan unveiled in October, which focuses on extracting value from the growth achieved in the last decade that culminated with the acquisition of Talisman Energy.
Additionally, Repsol and Statoil have agreed to establish a single operatorship (Statoil) in Eagle Ford that will help ensure operations become more efficient, through optimal field developments and cost savings, and thus more resilient to low oil prices. After the transaction Repsol retains 37% of the Eagle Ford project.
