Repsol wants to sell Chauvin in Alberta
Repsol wants to sell its oil assets in Alberta to Teine Energy. The transaction would allow him to invest in other areas.
| Sectors | Gas, Oil, Exploration & Production, Gas Exploration & Production |
|---|---|
| Themes | Investments & Transactions |
| Companies | Teine Energy, ExxonMobil, Imperial Oil, Canada Pension Plan Investment Board, Repsol |
| Countries | Canada, Spain, United States |
Repsol agrees to sell its oil assets in Alberta to Teine Energy. This transaction would be supported by the Canada Pension Plan Investments Board (CPPIB). However, the sale still needs to be approved by Alberta regulators.
Repsol is moving into other more attractive areas
Through the sale of Chauvin, Repsol could reap $304.65 million. The sale includes the heavy oil and gas production assets and the infrastructure that supports them.
Nevertheless, the rejection of the deal by Alberta regulators could scupper the deal. The deal involves the sale of approximately 38,000 hectares of oil and gas production land in Alberta.
Repsol’s assets in Alberta are divided between the Chauvin, Grand Edson and Duvernay areas. Chauvin is considered one of the company’s core oil assets. It has approximately 104,000 acres with 1,800 km of pipeline and 21 operating facilities in the region.
The potential sale is part of a strategy by Repsol to invest the proceeds in other assets. At the same time, the company plans to sell other Canadian assets. This would allow it to redirect its cash and efforts to areas it considers more prolific.
It seems that Repsol is particularly interested in Eagle Ford in the United States. In addition, it aims to invest in renewable energies in order to develop in this field.
However, the Spanish company says it will still be present in Canada.
Companies sell their assets
Moreover, the current context would push oil companies to sell their assets. Although the price of energy has fallen recently, it remains particularly high. In fact, Brent crude has risen by more than 20% since the beginning of the year. In addition, the price of a barrel is $93.
Companies such as ExxonMobil Corp. and Japex are following this trend and are also selling some of their assets. In fact, Exxon, along with its Canadian unit Imperial Oil, sold their Energy Canada joint venture to Whitecap Resources for $1.5 billion. While Japex sold its interest in the Hangingstone oil sands project.
