Repsol has agreed to sell its hydrocarbon exploration and production assets in Canada to a local company, Peyto, for 468 million dollars (about 435 million euros), thereby advancing its strategy of rotating assets and concentrating on areas of greatest potential, especially the United States and Brazil.
The company led by Josu Jon Imaz says that the operation is part of the “ongoing reorganization of its portfolio” with the aim of “focusing activity in key regions”. The agreement includes all mining rights, facilities and infrastructure of the oil and gas businesses.
The assets include those in the Greater Edson area, in the west of the country, where there are gas production fields. The Calgary-based buyer already has twelve gas processing plants and significant production permits in the Alberta area.
Repsol wants to focus on OECD countries and, above all, the United States, where it has detected greater synergies and business opportunities.
Its current strategy has led it to reduce the countries where it has a presence in exploration and production from 25 to 14. It has already sold assets in Vietnam, Malaysia, Papua New Guinea, Australia, Greece, Morocco, Iraq, Bulgaria, Ecuador and Russia, while preparing selective acquisitions in the areas of greatest interest to it.
Since 2020, the company has made fourteen discoveries that have provided it with significant resources, especially in the United States and Mexico. Its development, he indicates, will contribute to maintaining current production levels until the end of the decade.
The company, immersed in its strategic plan until 2025, sold 25% of its production and exploration business to EIG, which allowed it to value its asset portfolio, which reaches a total value of 19 billion dollars.
The purchase announced today is expected to close in mid-October and is conditional on necessary regulatory approvals. RBC Capital Markets has acted as financial advisor to Repsol in the operation.
