Spanish Major Announces Deal to Reduce Capex

Repsol agreed to acquire a 15% share in the Gudrun field in Norway from Statoil, as part of an asset swap that gives the Norwegian company an additional 13% stake in the Eagle Ford project in the United States. After the transaction, Repsol will retain 37% of the Eagle Ford project.

"Both transactions are valued at the same amount, so that the effect on the P&L account is neutral for Repsol, and increases Repsol’s positive free cash flow by EUR 500 million in the 2015-2017 period, lower capital expenditure, and generate greater synergies and operational efficiencies," the company wrote on Friday, explaining that both transactions are expected to close before the end of 2015. 

Spain’s Repsol said that it will continue focusing on extracting value from the growth achieved in the last decade that culminated with the acquisition of Talisman Energy.

The two companies are indeed continuing talks.

"Pending partner approval, Statoil also agreed to purchase a 31% stake held by Talisman–Sinopec UK in the Alfa Sentral License in the United Kingdom, for approximately $20 million dollars."

Earlier this year, Repsol said it plans to sell non-strategic assets for EUR 6.2 billion, adding it will cut spending by 38% in the next 4 years with respect to 2014.