Repsol makes money again and leaves Canada. The Spanish oil company announced on Thursday the sale of all its oil and gas assets in the North American country to the local Beto group for $468 million (€437 million at the current exchange rate). The agreement includes all mining rights, facilities and infrastructure related to Canadian oil and gas exploration. It represents a new injection of cash into the already booming treasury of Spain’s largest drilling company.
The Josue John Emaze-led company frames the sale as part of a “refocus” on its exploration and production portfolio by “rotating assets to focus and consolidate in key areas – preferably in OECD countries”. [el club de los países ricos]– With a special focus on the United States.” Repsol expects this transaction – subject to customary closing conditions in this type of transaction, including the receipt of regulatory approvals – to close in mid-October.
Despite its exit from Canada’s exploration and production business, the Spanish oil company will maintain two relationships with the North American country: its Saint John LNG facility and its Saint John LNG facility. commerce.
Canada’s exit is not the only exit that the Spanish oil company has made recently, as it has gradually abandoned those geographical areas that it considers “non-strategic”: Vietnam, Malaysia, Papua New Guinea, Australia, Greece, Morocco, Iraq, Bulgaria, Ecuador and Russia. In this way, it went from being present in 25 countries to only 14 countries. In parallel, Repsol doubled its commitment to the United States and Brazil. Even after selling the Canadian assets, the company estimates that its discoveries of new wells in the past three years — “particularly in the United States and Mexico” — will allow it to “maintain current production levels until the end of the decade.”
This new exceptional income is in addition to the sale of 25% of its renewable energy subsidiary to the French insurance company Credit Agricole and the Swiss fund Energy Infrastructure Partners (EIP) for $905 million and, above all, 25% of its global crude oil business. And gas to the EIG Fund in the amount of 4.850 million. However, its management has resisted making significant investments from the funds raised in these operations. In fact, Emaze has bragged in recent meetings with analysts that he is the “most boring CEO” in the sector. Rules of caution: Although Repsol remains open to more purchases, especially in renewable energy, it appears to have learned its lesson from the past decade, when it embarked on large purchases such as those by Canadian oil company Talisman Energy. They did not provide the expected performance. And this is what Mendes Alfaro still remembers.
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