Repsol To Sell 13% Stake In US Eagle Ford JV To Statoil; To Buy Assets In Norway

(RTTNews) - Spanish integrated energy company Repsol S.A. (REPYY.PK) Friday announced that it has agreed to divest a 13 percent stake in its Eagle Ford project in the United States to its partner and Norwegian energy firm Statoil ASA (STO). At the same time, Repsol will acquire a 15 percent share in the Gudrun producing field in Norway from Statoil.

Repsol said that both transactions are valued at the same amount, so that the effect on the P&L account is neutral for Repsol. The deal increases Repsol's positive free cash flow by 500 million euros in the 2015-2017 period, lower capital expenditure, and generate greater synergies and operational efficiencies.

Further, Repsol and Statoil have agreed to establish a single operatorship (Statoil) in Eagle Ford, that will help ensure operations become more efficient. After the transaction Repsol retains 37 percent of the Eagle Ford project.

The effective date for the agreements on Gudrun and Eagle Ford is January 1, 2015.

In addition, the Board of Repsol-Sinopec Brazil or RSB, a company in which Repsol holds 60 percent share, has approved a resolution to propose that Statoil should become operator of the BM-C-33 license in Brazil's Campos basin. RSB will keep its current 35 percent share in the project.

This change allows Repsol to focus on the development of the three play-types outlined in its 2016-2020 Strategic Plan.

All the transactions outlined are expected to close before the end of 2015, pending the customary approvals in this type of transaction.

Pending partner approval, Statoil also agreed to purchase a 31 percent stake held by Talisman-Sinopec UK in the Alfa Sentral License in the United Kingdom, for approximately 20 million dollars.