Tsvetana Paraskova
Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.
By Tsvetana Paraskova – Nov 29, 2024, 6:30 AM CST
Spain’s Repsol has reached a deal to sell producing oil and gas assets in Colombia to Latin American producer GeoPark for $530 million, as part of the overhaul of the portfolio of the Spanish energy major.
Repsol will sell to GeoPark 100% in its unit Repsol Colombia Oil & Gas Limited, which is a minority partner of Colombia’s state firm Ecopetrol in the CPO-9 block, the Spanish firm said in a stock exchange filing on Friday.
Ecopetrol holds 55% of the block and is its operator, while Repsol owns the remaining 45%.
The sale of upstream assets in Colombia also includes Repsol’s 25% stake in the SierraCol Energia Arauca, the largest independent oil and gas operator in Colombia.
The transaction is subject to customary closing conditions, including regulatory approvals and the right of first refusal of Repsol’s partners in the assets, the company said.
The deal with GeoPark is part of Repsol’s strategy to rationalize its asset portfolio. The Spanish firm has said it would seek to sell up to $4.2 billion (4 billion euros) in assets to fund its rising investments in low-carbon energy.
Despite being an oil and gas producer, Colombia has been struggling with an energy crisis due to falling output and uncertainties in regulation.
Colombia’s oil and gas industry is in disarray and in continuous decline, also due to Colombia’s leftist President, Gustavo Petro, banning the awarding of new oil and gas exploration licenses and contracts.
Repsol, for its part, has pledged increased investments in renewable electricity and other low-carbon energy solutions.
However, reports emerged last month that the company had decided to pause green hydrogen development projects in its home country, citing an unfavorable regulatory regime with the idea of a permanent windfall tax on energy companies.
The Spanish energy giant is the latest European firm to pause or ditch green hydrogen plans, due to either policy or demand concerns.
By Tsvetana Paraskova for Oilprice.com
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Tsvetana Paraskova
Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.