Information Regarding the Agreement for the Acquisition of 49% of Repsol Sinopec Resources UK

Source Company Press Release
Company Repsol, Sinopec Corp.
Tags Country: United Kingdom, M&A: Corporate Deal, Deals, Upstream: Upstream News
Date April 28, 2023

Repsol and Sinopec, the current shareholders of  Repsol Sinopec Resources UK (RSRUK), a leading North Sea oil and gas exploration company, have agreed that, subject to the satisfaction of conditions,  Repsol will acquire from Sinopec its 49% interest in the shares of RSRUK.

At completion of the acquisition, Repsol will become the owner of 100% of RSRUK.  Repsol and Sinopec will immediately suspend and at completion, settle, the long-running arbitration proceedings in relation to Sinopec’s acquisition of its stake in RSRUK from the Canadian group, Talisman (which was subsequently acquired by  Repsol). Repsol and Sinopec will continue their broader strategic collaboration, including through their joint venture in Brazil.

The transaction will have no significant impact on earnings as Repsol made a provision in its accounts for the arbitration. The total consideration of the agreement is 2.1 B$, nevertheless and once the cash available at RSRUK for the stake of 49% is consolidated, the net cash flow impact for the  Repsol Group is 1.1 B$.

Completion of the share transfer and the settlement of the arbitration is expected to occur before the end of 2023.

Repsol Sinopec Resources UK Limited Financials

2021 KEY FINANCIAL RESULTS

The group’s key financial and other performance indicators for the financial year were as follows:

  2021 $000  2020 $000 
Revenue  1,011,593  801,121 
Operating expenses  (894,936)  (1,543,189) 
Production (boe/day)  37,929  51,526 
Operating cost per barrel  $47.31  $28.33 
Source: EvaluateEnergy® ©2024 EvaluateEnergy Ltd