InternationalMoney and Business

Repsol’s new oil fields to outweigh Venezuela, Libya declines to 2020: CEO

BARCELONA – Repsol expects output from around 10 of its new international plays to outweigh any possible declines from Libya and Venezuela and drive it towards its 750,000 b/d of oil equivalent production target for 2020.

CEO Josu Jon Imaz, speaking on a results call Thursday, listed a number of upstream plays which are either expected to come online, ramp up or provide a full year of production to hit the target, which would be a 30,000 boe/d increase from its own budgeted forecast for this year.

Increasing output from the Reggane gas project in Algeria, the Kinabalu offshore oil and gas project in Malaysia and its Marcellus Shale acreage in the US, among others, could contribute an additional 57,000 boe/d over this and next year, the company said.

Of this total, 9,000 boe/d would be in Latin America, 21,000 boe/d in Europe and Africa, and 37,000 boe/d in North America, the company said, without giving a breakdown.

Upside could also come from Indonesia and Peru, where production curtailments have been overcome in 2018, while 2020 might see full production from Buckskin in the Gulf of Mexico (following first oil later this year), a second rig at Marcellus, increased output from Acacias in Colombia and first oil at Yme offshore Norway, among others, Imaz said.

The company has budgeted for production of 720,000 boe/d for the full year 2019, which would be an increase from 715,000 boe/d in 2018.

This includes an assumed 50,000 boe/d from Venezuela — against 63,000 boe/d and around 77,000 boe/d in the previous two years — and 35,000 boe/d from Libya, down from 36,000 boe/d for full year 2018.

Repsol said it has been reducing its financial exposure to Venezuela, to a level of Eur456 million by end 2018, or 1.5% of its capital employed.

The latest news from Libya is positive, according to Imaz, who told analysts that there could be news about a potential reopening of the Sharara field, the country’s biggest, in the coming days.

S & P Global Platts


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