Repsol details targets for up to EUR 3bn planned acquisitions
Spain-based oil concern Repsol [REP:SM] expects to spend between EUR 2.5bn and EUR 3bn in acquisitions, after raising EUR 3.820bn from the sale of its stake in Gas Natural Fenosa [BME:GAS], El Economista reported. At a meeting earlier this month with analysts, Repsol gave some of the keys to future investments included in its next strategic plan, to be presented on 7 June, according to the report.
Repsol wants to make several small acquisitions totaling EUR 3bn, focusing its inorganic growth on three areas: the gas and electricity business in Spain and Peru, chemicals and oil, which represents 36% of its business. As far as electricity and gas are concerned, the oil company still plans to invest in renewables, mainly in acquiring technology rather than a large number of assets, the Spanish-language paper said.
Repsol will also divest about 20% of its exploration and production assets, replacing around 200,000 to 300,000 low-margin barrels per day with 50,000 to 100,000 higher-margin barrels per day and continuing at a pumping level of around 700,000 barrels per day, Expansion said.
The company also plans to enter the combined cycle business in order to monetize this gas, although it noted it does not intend to participate in regulated businesses