Tag Archives: Repsol

Mexico’s Permex prepares to sell 9% Repsol stake

Energy,

pemexMexican state-run oil company Pemex has hired Credit Agricole to sell its stake of just over 9 % in Spanish oil major Repsol, according to Reuters.

Pemex, a long-time Repsol shareholder, has had an increasingly fractious relationship with the Spanish group.

It has publicly locked horns with Repsol chairman Antonio Brufau over how he handled negotiations after Argentina’s 2012 seizure of the company’s YPF business, which ended in a US$5bil settlement this year.

Pemex could sell its Repsol holding in several stages, including a market offering. Pemex has 9.3% of the Spanish group, according to a Repsol filing witho Madrid’s stock market regulator yesterday.

The stake’s market value is worth about 2.3 billion euros (US$3.19bil) the third largest stakeholder in Repsol

Separately, Spanish newspaper Expansion reported that businessman Juan Miguel Villar Mir, chairman of Spanish infrastructure company OHL, had offered to take a large stake in Repsol if any shareholders sold out.

A spokesman for Grupo Villar Mir, a holding company comprising the businessman’s OHL stake as well as his energy and property ventures, denied the report’s claims.

“There has been no contact or conversation over taking a stake in Repsol,” the spokesman said.

Spanish bank La Caixa is Repsol’s biggest shareholder, with about 12% of the company.

Repsol last week created the new role of chief executive officer after pressure from Pemex to shake up the management structure.

Repsol forms JV with Sinopec

Resources, ,
Repsol YPF, S.A., Spain’s largest integrated oil integrated, has decided to sell a 40% stake in its Brazilian assets to China Petrochemical Corp. or Sinopec Group for $7.1 billion. This deal reflects China’s increasing interest in international oil and gas resources, especially in Brazil.
This transaction is China’s largest year-to-date international investment for oil and gas.
In August 2009, Sinopec had acquired Geneva-based oil and gas explorer Addax Petroleum for $7.5 billion. Post acquisition, the company would gain access to Addax’s substantial reserves off the coast of West Africa and in Iraq.
Repsol was searching for funds for its various upstream activities in the coveted subsalt area offshore Brazil. The deal will help Repsol to invest in these prolific projects as subsalt projects need substantial capital to explore.
The joint venture between the two companies, valued at $17.8 billion, will explore these subsalt offshore oilfields. Importantly, the joint venture will be treated as the largest foreign-controlled energy venture in Latin America, in which Repsol will have the controlling interest with a 60% interest.
The key positives in the Repsol story include its leverage to the Atlantic Basin LNG market and improving prospects for diversification away from its Latin American (particularly Argentine) core. For this, the company is trying to sell a stake in its Argentine counterpart YPF. The company’s growing pipeline of projects outside Argentina is expected to lower its exposure to that market in the long run.
Following this news, the American Depository Receipts of Repsol were up nearly 7% to $27.47 at closing on Friday.

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