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Brazil: Repsol closer to IPO of Brazilian upstream assets
30 Jul 2010
Spain's Repsol is close to choosing to float part of its reserve-rich Brazilian upstream assets rather than sell a stake to finance development of the oil fields, a company executive said on Thursday.
The company, one of the largest outside investors in Latin America, could join forces with Brazil state-run oil group Petrobras - the operator of many fields where it is present - but is also prepared to arrange an initial public offering (IPO) of its assets on their own. 'Our initial idea is to go to the market with Petrobras but in any case we plan to IPO by the last quarter of this year,' Chief Operating Officer Miguel Martinez said on a conference call.
Repsol estimates its Brazilian acreage will provide it with over 170 million barrels of oil equivalent in proven reserves in five years. The oil group thinks a 40 percent capital increase at its business in Brazil followed by an IPO would be enough to fund its five-year, $5-6 billion development plan for the area, without resorting to prior asset sales or further debt issues.
Source: Newswires
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