Repsol will retain 60% of the resulting company and Sinopec will have a 40% stake.

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Good business management and financial discipline throughout the year, together with an improved economic climate and business indicators, have allowed the company to make significant headway in the strategic objectives set out in the Horizon 2014 strategic plan.

Especially significant was the agreement between Repsol and China’s Sinopec in October to create one of Latin America’s largest private energy groups, valued at $17.773 billion. Repsol will retain 60% of the resulting company and Sinopec will have a 40% stake.

As stipulated in the terms of the agreement, Repsol Brazil will carry out a capital increase that Sinopec will subscribe in its entirety. The deal is still pending authorisation by the competent authorities.

The provision of funds for this operation covers all the financial needs for investments planned for the overall development of all current projects in Repsol Brazil’s portfolio of assets including some of the world-class discoveries in recent years, such as Guara and Carioca.

This deal reflects the value of Repsol’s unprecedented success in its exploratory activity in Brazil and recognition of its strategy and investment in both human and technical resources and materials, particularly in the offshore Brazil pre-salt field in the last few years.

Additionally, the start-up of the Peru LNG project, the progress in the capacity increase and modernization of the Cartagena refinery, the expansion, improvement and diversification of the portfolio of exploration assets and the gradual divestment in non-strategic assets significantly advance the achievement of the goals set out in the Horizon 2014 strategic plan.

Source: www.repsol.com

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