Repsol completes sale of LNG assets
Spanish energy giant Repsol has completed the sale of liquefied natural gas (LNG) assets in Trinidad and Tobago and Peru with a handover to Shell.
In October 2013, Repsol sold its stake in Bahía Bizkaia Electricidad (BBE) to BP, which exercised a purchase option over the asset, a January 2 statement from Repsol said..
The combined transactions represent total proceeds for Repsol of US$4.3 billion (US$4.1 billion from the sale of assets to Shell and US$0.2 billion from the sale of BBE to BP), and the company additionally sheds financial commitments and non-consolidated debt in line with the figures announced in February 2013 when the assets´ sale was agreed.
The sale, which includes Repsol’s minority stakes in Pt Fortin-based Atlantic, Peru LNG and BBE as well as the LNG sale contracts and time charters with their associated loans and debt, has generated approximately US$2.9 billion for Repsol in profit and capital gains after tax, slightly higher than the guidance given when the transaction was agreed in February.
Repsol and Shell have additionally signed an LNG supply agreement by the latter to the Canaport regasification terminal in Canada of approximately one million tons over a ten-year period.