Repsol Consults Banks Over Sale of Stake in Gas Natural Fenosa

Spain’s Repsol is moving closer to the sale of its stake in utility Gas Natural Fenosa, with the Financial Times reporting that the oil company sounded out banking advisers about the operation.

At the end of July, Repsol voiced its intention to proceed with the sale of its €4.4 bn stake.

“We are not in a hurry, but it is true, that is something we have to seriously think about,” said Chief Financial Officer Miguel Martinez in July. 

Repsol has recently asked Citigroup and Deutsche Bank to study options for its 30% holding in Gas Natural Fenosa, planning to free cash to invest in upstream oil exploration. 

The Madrid-based firm beat forecasts for the first half of the year, with good performances of downstream and especially upstream units. It surpassed its 2012-2016 divestment goals at the end of February following the agreement to sell LNG assets to Shell for $6.652 billion.