Spanish company Repsol has revealed major plans designed to increase growth through extensive use of the company’s upstream wing over the next four years.
According to a statement released by the company, the 2012-2016 Strategic plan “rests on four pillars: high growth of Upstream, maximizing the return of Downstream and LNG (liquefied natural gas), financial strength and competitive compensation to shareholders.”
The company intends to fund this growth strategy with €19 billion focused mainly on upstream projects spread across the globe, including successful fields in Brazil, the United States, Russia, Spain, Venezuela, Peru, Bolivia and Algeria.
If the Strategic Plan is successful, it is expected to fuel annual growth in production of approximately 7% up to 500 000 bpd by 2016, with a predicted reserve replacement of more than 120% for the entire four year period.
According to Repsol, the strategic plan should see net income almost double to 1.8 times its current levels – the company points out that this figure excludes the recently expropriated YPF.
Repsol’s shares have been hit badly this past year, falling a total of 43.5%, especially since the Argentinian government nationalised YPF and took control of Repsol’s flagship Vaca Muerta field. Analysts, however, still recommend investing in Repsol because of the company’s above average levels of growth.
Edited from various sources by David Bizley
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/30052012/repsol_reveals_strategic_plan_designed_to_boost_growth_and_double_profits/