Spanish oil firm Repsol has completed the $4.1bn sale of its LNG assets in Peru, and Trinidad and Tobago to Shell after obtaining relevant authorisations.
In October 2013, the company had sold its stake in Bahia Bizkaia Electricidad to BP.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The combined transactions represent total proceeds for Repsol of $4.3bn, including $4.1bn from the sale of assets to Shell and $0.2bn from BBE sale to BP.
Repsol also sheds financial commitments and non-consolidated debt in line with the figures announced in February 2013.
According to Repsol, the sale includes the minority stakes in Atlantic LNG (Trinidad and Tobago,) Peru LNG and BBE, as well as the LNG sale contracts and time charters with their associated loans and debt.
The sale has generated about $2.9bn for the company in profit and capital gains after tax.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataRepsol will adjust the book value of the North American assets with a provision of $1.5bn after tax as a consequence of the transferral of assets.
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.
In addition, Repsol and Shell have signed an LNG supply agreement with the Canaport regasification terminal in Canada of around one million tonnes over a ten-year period.
Following the completion of the sale, with an economic date set at 30 September 2012, Repsol reduces net debt by $3.3bn and strengthens its balance sheet considerably.
Repsol sold assets for more than €5bn with the transaction, surpassing the objectives outlined in the 2012-16 strategic plan to divest between €4bn and €4.5bn during the period.
Image: Repsol Campus Building in Méndez Álvaro, Madrid. Photo: courtesy of Repsol.
