• 4 minutes Will We Ever See 100$+ OIL?
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 11 minutes Energy Outlook for Renewables. Pie in the sky or real?
  • 4 hours Shale Oil will it self destruct?
  • 14 hours Berkeley becomes first U.S. city to ban natural gas in new homes
  • 4 hours Today in Energy
  • 38 mins Oil Rises After Iran Says It Seized Foreign Tanker In Gulf
  • 5 hours Drone For Drone = War: What is next in the U.S. - Iran the Gulf Episode
  • 1 day Populist, But Good: Elizabeth Warren Takes Aim at Private-Equity Funds
  • 1 day Mnuchin Says No Change To U.S. Dollar Policy ‘As of Now’
  • 7 mins Iran Captures British Tanker sailing through Straits of Hormuz
  • 2 days Washington Post hit piece attacking oil, Christians and Trump
  • 2 days Migration From Eastern Europe Raises German Population To Record High
  • 19 hours Why Natural Gas is Natural
  • 15 hours LA Solar Power/Storage Contract
  • 2 days Excellent Choice: Germany's Von der Leyen Secures Powerful EU Executive Top Job
Why Oil Tankers In The Middle East Shouldn’t Hire Mercenaries

Why Oil Tankers In The Middle East Shouldn’t Hire Mercenaries

Shipping companies sailing through the…

Mexico Confirms Major Tax Cut For PEMEX

Mexico Confirms Major Tax Cut For PEMEX

Mexican President Lopez Obrador presented…

Repsol to Sell LNG Assets for €2 billion in Order to Salvage Debt Rating

In an attempt to reduce its debt and keep its investment grade debt rating Repsol SA (REPYY), Spain’s largest energy company, aims to sell €4.5 billion worth of assets before 2016. A current deal will see it sell its liquefied natural gas (LNG) assets for an estimated €2 billion, with the exchange expected to be completed by the beginning of February.

After the Argentine government seized its YPF business in April 2012 Repsol lost almost half of its oil reserves, causing Moody’s Investors Service, Fitch Ratings, and Standard & Poor’s to cut its credit rating to just one level above junk, giving it a negative outlook.

Related Article: Colorado Enacts Tough New Fracking Measures

As Spain’s sovereign debt has improved, and helped by the €1.9 billion sale of other assets, Repsol has managed to improve its own debt situation. The deal to shift its LNG assets, including a 4.4 million metric ton capacity plant in Pampa Melchorita, Peru, the Atlantic LNG plant in Trinidad and Tobago, the Bahia de Bizkaia regasification plant in Bilbao, Spain, and the Canaport facility in Canada, will all work to further strengthen its debt position.

The deal is still very secret and no details have been given as to who the buyer is, however GDF Suez SA, the Paris based company, is the largest buyer of natural gas in Europe, and last October the company’s CEO, Gerard Mestrallet, said that they were looking at the possible purchase of Repsol’s LNG assets, with a source close to the deal revealing to Bloomberg that the French company is indeed in talks to buy at least some of the assets.

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play