Repsol to shed $7B worth of assets, cut spending by 40 pct

Spanish oil company Repsol is looking to focus on efficiency and asset portfolio management over the next five years.

Revealing its 2016-2020 strategic plan on Thursday, Repsol said that after a period of growth, which culminated with the $8.3 billion acquisition of Canada’s Talisman, now is the time to think about extracting value from the growth achieved.

As part of its plan, Repsol will look to divest 6.2 billion euros ($7.1 billion) worth of non-strategic assets, and cut spending by 38 percent.

The divestments would take place between 2016 and 2020, half of that expected in the next two years.

The plan also includes a broader integration of refining and marketing activity, with divestments in non-strategic assets and „a clear goal of reducing energy costs and CO2 emissions.“

When it comes to the upstream section of its business Repsol has identified three strategic region to focus on: North America, Latin America, and South-East Asia.

“We are presenting a Plan with a clear vision, and measurable commitments. This plan not only shows our solidity and resilience, but also how far we can go in terms of creating value and strength for our company,” said Repsol CEO Josu Jon Imaz.

Offshore Energy Today Staff