The Spanish energy group Repsol will buy the 49% stake held by China’s Sinopec in their British joint venture for $2.1 billion, ending their dispute, the Spanish group told the market watchdog.
“Repsol and SinopecRepsol, currently shareholders of Repsol Sinopec Resources UK (RSRUK), a company specializing in oil and gas exploration in the North Sea, have reached an agreement whereby, after the fulfillment of certain conditions, Repsol will purchase from Sinopec its 49% stake in RSRUK”, Repsol informed the National Securities Market Commission (CNMV) in Madrid.
“The total deal amount is for $2.1 billion,” the company added, which expects to complete the deal during 2023. Repsol will then become “100% owner of RSRUK”, he stressed. The Spanish group said that this operation would put an end to “extensive arbitration proceedings” related to “the acquisition by Sinopec of its stake in RSRUK from the Canadian group Talisman (later acquired by Repsol)”.
Repsol and Sinopec nevertheless intend to continue their “important strategic collaboration”, including through their joint venture in Brazil, he assured. The Chinese oil giant was claiming $5.5 billion from its Spanish partner in their dispute.
