Repsol's Upstream Unit Sees Strong Growth

Spain's Repsol reported Thursday that its upstream division saw an improved performance in all metrics during 2012.

Repsol's total production increased 11 percent during the year, with average production reaching 332,435 barrels of oil equivalent per day. The firm's reserve replacement ratio reached a record high of 204 percent.

Repsol said it completed the execution of four of its 10 key projects from its 2012-to-2016 strategic plan, which was announced in May 2012. It added new production from Bolivia (Margarita-Huacaya), the US (Mid-Continent) and Spain (Lubina and Montanazo). The company also added assets in Russia through its AROG joint venture.

The firm also highlighted five new discoveries during the year, including: Pão de Açucar in Brazil, the Sagari discovery in Peru,TIHS1 in Algeria, and Chipirón T2 and Cano Rondón East in Colombia. Repsol said these discoveries mean it has exceeded the annural resources incorporation goal it set in its strategic plan.

Meanwhile Repsol began commercial production at the giant Sapinhoá field in Brazil at the start of this year. It expects this field to reach an output of 120,000 barrels of oil equivalent during the first development phase.

Repsol results for 2012 showed it made a net profit of $2.7 billion – which was down 6.1 percent on 2011 (although the since-nationalized Argentinian subsidiary YPF contributed to 2011's figure). The firm's operating revenue during the year was 13.2 percent greater than that for 2011 at $78 billion.

On Tuesday this week, Repsol reported that it had sold several of its liquefied natural gas assets to Royal Dutch Shell for $6.7 billion. The firm said that the sale of these assets means that it has more than met its asset divestment targets that are part of the 2012-to-2016 strategic plan announced in May 2012.

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.

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