Repsol Eyes US Upstream Opportunities Following Gas Natural Fenosa Sale

Spain’s Repsol is ready to spend $5 to $10 billion for a US or Canadian exploration and production company, with a special focus on oil rather than natural gas, the Wall Street Journal reported on Monday.

Repsol is disinvesting in Europe, asking Citigroup and Deutsche Bank to study options to sell its stake in utility Gas Natural Fenosa. The Spanish oil major surpassed its 2012-2016 disinvestment goals at the end of February, following the agreement to sell LNG assets to Royal Dutch Shell for $6.652 billion. 

According to analysts, Repsol’s interest in strengthening its exploration and production business is conditional to the sale of Gas Natural. The utility is worth about €4.5 billion at current market prices.

The company already planned €19 billion to boost its upstream oil business through 2016, expressing special interest for United States, Latin America and Russia.

Also on Monday, Poland’s PKN Orlen has agreed to acquire 100% stake in TriOil Resources, a Canadian upstream company, for a total CAD 183.7 million ($233 million).