EXCLUSIVE Repsol agrees to sell Alberta oil assets to Teine Energy – sources, backed by CPPIB

The logo of Spanish energy company Repsol SA is seen at a gas station in Barcelona, ​​Spain, January 28, 2022. REUTERS/Nacho Doce

Join now for FREE unlimited access to Reuters.com

Sep 6 (Reuters) – Repsol SA (REP.MC) has agreed to sell around 95,000 net acres (38,000 hectares) of oil and gas producing land in Alberta to Teine Energy, backed by the regime’s Investment Board pension plan, three sources familiar with the plan told Reuters on Tuesday.

The Spanish oil major will make up to C$400 million ($304.65 million) from the sale, one of the sources said.

Repsol and Teine have sought regulatory approvals for the deal and expect to receive them by the end of September, the sources said. They warned that there is no certainty that Alberta regulators will clear the proposed transaction, and the deal could still fall through.

Join now for FREE unlimited access to Reuters.com

CPPIB declined to comment while Repsol and Teine Energy did not respond to requests for comment.

The potential sale includes Repsol’s heavy oil and gas production assets and the midstream infrastructure that supports them, such as a network of about 1,800 kilometers (1,120 miles) of pipelines, the sources added. They requested anonymity to discuss confidential negotiations.

Reuters reported in February that Repsol was considering selling some of its Canadian assets, in a bid to cash in on an oil and gas windfall. Read more

The sale would also allow Repsol to divert money and effort into more prolific shale regions, such as the Eagle Ford shale field in the United States, or spur investment in renewable energy, the companies said. sources.

Energy prices have fallen in recent weeks but remain high. Global benchmark Brent crude is up more than 20% so far this year, trading at around $93 a barrel on Tuesday.

This push has encouraged oil majors to sell assets in Canada, the world’s fourth largest oil producer.

Exxon Mobil Corp (XOM.N) and its Canadian unit Imperial Oil Ltd (IMO.TO) have sold their joint venture XTO Energy Canada to Whitecap Resources Inc (WCP.TO) for C$1.9 billion ($1.5 billion). dollars) in June, while Japan’s JAPEX sold its stake in the Hangingstone oil sands project last year. Read more

Repsol’s website calls Chauvin one of its core heavy oil assets, although the company last drilled new holes in the field at least four years ago, the sources said. Repsol’s production from the field hovers around 6,800 barrels of oil equivalent per day, the sources said.

After the sale of the Chauvin asset, Repsol will still own land in other gas producing fields across Canada and electrical infrastructure, among other assets.

($1 = 1.3135 Canadian dollars)

Join now for FREE unlimited access to Reuters.com

Reporting by Shariq Khan Editing by Denny Thomas and Marguerita Choy

Our standards: The Thomson Reuters Trust Principles.

Comments are closed.