02-01-2014
Repsol completes the sale of LNG assets to Shell
Repsol has completed the sale of liquefied natural gas (LNG) assets with the handover to Shell of assets in Peru and Trinidad & Tobago after the relevant authorisations have been obtained. In October 2013, Repsol sold its stake in Bahía Bizkaia Electricidad (BBE) to BP, which exercised a purchase option over the asset.
The combined transactions represent total proceeds for Repsol of $4.3 billion (of $4.1 billion from the sale of assets to Shell and $0.2 billion from the sale of BBE to BP), and the company additionally sheds financial commitments and non-consolidated debt in line with the figures announced in February 2013 when the assets´ sale was agreed.
The sale, which includes the minority stakes in Atlantic LNG (Trinidad & Tobago,) Peru LNG and BBE as well as the LNG sale contracts and time charters with their associated loans and debt, has generated approximately $2.9 billion for Repsol in profit and capital gains after tax, slightly higher than the guidance given when the transaction was agreed in February.
As a consequence of the transferral of assets, and in line with the company’s policy of financial prudence, Repsol will adjust the book value of the North American assets with a provision of $1.5 billion after tax, in line with new fiscal regulations. The resulting capital gains yet to be booked will be included in the accounting of 2013 and 2014, in accordance with the transferral date of the assets included in the agreement.
Repsol and Shell have additionally signed an LNG supply agreement by the latter to the Canaport regasification terminal in Canada of approximately 1 million tons over a 10-year period.
Following the completion of the sale, with an economic date set at 30th September 2012, Repsol reduces net debt by $3.3 billion and significantly strengthens its balance sheet.
With this transaction, Repsol has divested assets for more than 5 billion euros, surpassing the objectives outlined in the 2012-2016 Strategic Plan to divest between 4 and 4.5 billion euros in the period.
News Category:
-
Beyond processbook & PI vision: Exploring today’s industrial analytics tools
(Webinar) - In the Manufacturing 4.0 era, industrial organizations have more data at their fingertips than ever, offering the promise of higher production rates, more ...
04-06-2024
-
MOL inaugurates its polyol complex in Tiszaújváros
MOL's EUR 1.3 billion polyol complex in Tiszaújváros, boasting a capacity of around 200,000 tonnes of polyol per year, has been inaugurated. The ceremony, addressed ...
15-05-2024
-
NEXTCHEM completes the acquisition of GasConTec
Further to the announcement made on 4 March 2024, MAIRE announces that NEXTCHEM has finalized the acquisition of 100% of GasConTec GmbH, an innovative company specialized ...
15-05-2024
-
KBR awarded digital solutions contract by OCI
KBR announced today it has been awarded a contract by OCI Global to design and deploy its proprietary operator training simulator for OCI's 3,000 metric tonnes ...
13-05-2024
-
Worley awarded Bayou Bend CCS carbon capture and storage facility contract
We’ve been selected to design and evaluate CO2 gathering, handling and sequestration facilities located along the Gulf Coast in Southeast Texas. Bayou Bend ...
13-05-2024
-
Black & Veatch delivers feasibility study for Andes Energy LNG Terminal
Global liquefied natural gas (LNG) infrastructure solutions leader Black & Veatch has completed a feasibility study for the planned Andes Energy Terminal, LNG regasification ...
09-05-2024
-
Shell to sell interest in Singapore Energy and Chemicals Park to CAPGC
Shell Singapore Pte Ltd, a subsidiary of Shell plc, has reached an agreement to sell its Energy and Chemicals Park in Singapore to CAPGC Pte. Ltd., a joint venture company ...
08-05-2024
-
Integrated Global Services recognized for role in mega turnaround
Integrated Global Services has been recognized as a major contributor to the successful Ras Tanura Refinery 2024 Mega Turnaround and Inspection for Saudi Arabian Energy ...
08-05-2024
-
Ebara Elliott Energy to provide compressor for SAF project in Thailand
Ebara Elliott Energy, formerly Elliott Group, announces it has been contracted to provide a motor-driven recycle compressor with a variable frequency drive (VFD) for ...
07-05-2024
-
ETH Zurich select hte to provide high throughput test system designed for CO2 electroreduction
hte – the high throughput experimentation company was awarded a contract by the technical university ETH Zurich to provide a high throughput test system designed for ...
07-05-2024