Repsol closer to listing its Brazilian upstream assets
Spain’s Repsol is close to choosing to float part of its reserve-rich Brazilian upstream assets rather than sell a stake to finance development of the oilfields, a company executive said yesterday.
The company, one of the largest outside investors in Latin America, could join forces with Brazil state-run oil group Petrobras – the operator of many fields where it is present – but is also prepared to arrange an initial public offering its assets on their own.
“Our initial idea is to go to the market with Petrobras but in any case we plan to IPO by the last quarter of this year,” said chief operating officer Miguel Martinez.
Repsol estimates its Brazilian acreage will provide it with over 170m barrels of oil equivalent in proven reserves in five years. The group thinks a 40 per cent capital increase at its business in Brazil followed by an IPO would be enough to fund its five-year, $5-6bn development plan for the area.