Repsol targeting upstream growth

Repsol aims to grow its production of hydrocarbons by 8% through 2020.

Repsol short-cylce projects
Repsol short-cylce projects

Offshore staff

MADRID, Spain – Repsol aims to grow its production of hydrocarbons by 8% through 2020, after integrating Talisman Energy and doubling the size of its Upstream division.

The Upstream unit will invest Eur7.9 billion ($9.3 billion) by 2020, with around 60% of this allocated toward growth projects and exploration in order to increase production and ensure an optimal level of reserves over the medium and long term.

Priorities will include shallow-water projects.

It will also invest in growth of existing assets to lift production in the short term, the list includingBuckskin in the US Gulf of Mexico, Yme in the Norwegian North Sea, Bunga Pakma and Kinabalu offshore Malaysia, and Corridor (Indonesia).

The overall goal is to lift the company’s production to 750,000 boe/d by 2020, complemented by active portfolio management and replacement of low-margin production with higher-margin barrels.

Beyond 2020, the company has identified five main development projects, including Sagitario andCampos 33 offshore Brazil, with a combined breakeven of $42/bbl.

In addition, the Upstream unit will launch a new efficiency and digitalization program with more than 600 initiatives planned, the goal being to achieve $1 billion of additional free cash flow per year by 2020.

06/06/2018

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