A look at Spanish oil giant Repsol

A look at Spanish oil giant Repsol and the importance of YPF to its future

Associated Press

Spanish oil giant Repsol was rocked this week on news that Argentina's government was wresting control of the group's Argentine energy division, YPF. Here are some key facts about Repsol and its dealings in Latin America.

— How big a player is Repsol in the global oil and gas industry?

Repsol YPF SA is Spain's largest company by revenue. Privatized in 1997, its revenue in 2011 was €63.7 billion ($84.03 billion) and it claims to be one of the world's top 10 non-state-owned oil companies. The Forbes 500 list says it was the 94th largest company in the world in 2011. Last year its operating income was €4.8 billion ($6.28 billion). YPF accounted for about 25 percent — €1.23 billion ($1.62 billion) — of that.

— How long has Repsol been operating in Argentina?

Repsol bought YPF in 1999, describing it as "one of the keys to corporate growth" through geographic diversification and business expansion. Repsol says it became "a more balanced and better-positioned multinational company" by buying what was Latin America's largest non-state-owned oil and gas company. Within two years of the YPF deal, Repsol had also expanded to Brazil, Venezuela and Bolivia. Repsol chief executive Antonio Brufau told reporters Wednesday that YPF is worth $18.3 billion, and he valued Repsol's 57 percent stake at $10.5 billion.

— If Argentina succeeds in keeping hold of YPF, how could Repsol cover the loss of income?

In October 2010, Repsol sold a 40 percent stake in its Brazil subsidiary to China's Sinopec for $7.1 billion. Brazil's Guara field, which it operates, has a total estimated recoverable volume of 2.1 billion barrels of oil and Repsol hopes it will yield 250,000 barrels a day from 2013. Two other fields in Brazil are expected to produce about 140,000 barrels a day from 2015.

In Venezuela, Repsol owns 11 percent of the Carabobo field which aims to produce 400,000 barrels a day from 2014.

Reporting on 2011, Repsol said the reserve replacement ratio — the amount of new oil found compared with the amount produced — rose to 162 percent from 131 percent in 2010. Investments in exploration were primarily in the U.S., Brazil and Angola, it said.

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