A consortium between Shell, Algeria's state-owned Sonatrach and Spain's Repsol (OTCQX:REPYY, OTCPK:REPYF) - the operator - won an oil and gas exploration license, while STO was awarded another block, also in partnership with Shell and Sonatrach.
Algeria has struggled to attract foreign investment to its oil sector in recent years amid security fears; a French hostage was killed in the country just last week.
Statoil (NYSE:STO) reported late Thursday that it has signed farm-in agreements with Repsol (OTCPK:REPYF, OTCQX:REPYY) to acquire stakes in two licenses offshore Colombia - a 10% share in the Tayrona license and 20% in the Guajira Offshore-1 license.
Petrobras (NYSE:PBR) operates Tayrona with a 40% stake, and Repsol retains 20% of the license after its farm-down to STO; the remaining 30% is held by Ecopetrol (NYSE:EC).
Repsol operates Guajira Offshore-1 and retains 30%, with EC holding the remaining 50%.
Repsol is said to have abandoned its original plan for a full takeover after failing to find buyers for assets it wasn’t interested in owning after a takeover, including TLM's North Sea and Southeast Asia assets, but the companies are talking about TLM assets in Texas’ Eagle Ford and Alberta’s Duvernay regions.
Earlier: Repsol, Talisman talks over a potential deal have stalled, WSJ reports.
Repsol's (OTCPK:REPYF, OTCQX:REPYY) talks to buy oil and natural gas assets from Talisman Energy (NYSE:TLM) have stalled, WSJ reports, in a setback for both companies as they try to reposition themselves.
TLM's stock price has been helped this summer by the talks, while Repsol has said it wants to better balance its production growth potential and risk by strengthening its business in politically stable, developed countries.
TLM holds attractive assets in the gas-rich Marcellus and Eagle Ford shale formations, but also less desirable assets in the North Sea which are considered a source of "intractable inertia" and a major drag on TLM's earnings.
Repsol has estimated it could spend as much as €7.5B ($10B) to develop the site in waters near the Canary Islands of Fuerteventura and Lanzarote off Africa’s west coast; drilling is expected to begin before year's end.
TLM likely will not lack for suitors for its individual assets, but analysts say taking on the entire company may be a tough ask, partly because its assets are disparate, including attractive assets stretching from Texas to Vietnam along with North Sea assets that have consistently missed production targets.
Repsol may be "trying to go after a wounded duckling and potentially pick away certain parts of it," says the deputy head of equities at Montrusco Bolton, a former owner of TLM shares.
However, adjusted net income, which excludes gains or losses in the value of inventories and one-off items, fell 2.7% Y/Y to €390M from €401M in the year-ago period; the adjusted result still was far above analyst consensus of €279M.
Total Q2 production fell 5.8% Y/Y to 338,000K boe/day, as output that ramped up in Bolivia, Peru and other parts of the world helped offset a lack of output from Libya.
Colombia announces disappointing results from its first oil auction in two years, drawing investment commitments totaling $1.4B which were well short of the $2.6B the government said it was expecting.
Submitted offers did include a few big names, as Exxon Mobil (XOM +0.6%) and Statoil (STO -0.1%) landed the rights to explore a new Caribbean Sea deepwater block in partnership with Repsol (OTCQX:REPYY, OTCPK:REPYF).
Colombia pumps ~1M bbl/day of crude oil, making oil the country's top export and main source of foreign revenue, but reserves are dwindling, and the government needs the money and know-how foreign companies can offer to explore offshore and to dig through shale.
Trading resumes in Talisman Energy (TLM +11.8%) after the company acknowledges it has been approached by Repsol (OTCQX:REPYY, OTCPK:REPYF) regarding various transactions, but says there is no assurance that any deal will be reached and will make no further statement until "such time as it is appropriate."
Media reports yesterday said Repsol is considering a bid for TLM, whose U.S. assets, especially an opportunity to gain a foothold in the oil-rich Eagle Ford basin in Texas, likely are the most enticing, according to a Cannacord note.
"Talisman would be a big step,” a Banco Santander analyst says. “There might be assets in the Talisman portfolio that could be of interest, but a full company bid would be a surprising move.”
Talisman Energy (NYSE:TLM) +13% AH following a Bloomberg report that Repsol (OTCQX:REPYY, OTCPK:REPYF) is exploring a bid for the company as it looks to deploy cash it received for compensation in the loss of its stake in YPF as a way to grow outside of its home Spanish market.
Repsol is said to have identified TLM as a top target and is working with JPMorgan Chase as it evaluates the deal.
Repsol has said it may spend as much as $10B on deals, and any acquisition probably would be in the U.S., Canada or other developed markets.
The 340K bbl/day Sharara oil field, where Repsol (REPYY, REPYF) is a partner, has resumed output after protests ended there, but a field manager says production already has reached 120K bbl/day and may reach 200K by the end of the day.
Together with the recent reopening of two key oil terminals, Sharara's resumption could bring oil production close to 1M bbl/day, three times the current level.
Rebels blocking Libyan oil production say they are reopening Es Sider and Ras Lanuf, the country’s largest and third-largest export facilities with combined capacity of 560K bbl/day, in a gesture of support for the newly elected parliament.
Libya is now producing ~320K bbl/day, ~20% of its output before Qaddafi was overthrown in 2011; reopening the two terminals would increase Libya’s crude export capacity almost five-fold.
August Brent futures (BNO) fell as much as 0.7% to $111.54, the lowest intraday level in almost three weeks; the restart at the two ports probably would send Brent down to $110/bbl, Commerzbank says.
Energy companies with a significant presence in Libya include Total (TOT), Statoil (STO), ConocoPhillips (COP), Marathon Oil (MRO), Hess (HES), Occidental Petroleum (OXY) and Repsol (REPYF, REPYY).
A favorable ruling would remove one of the last few hurdles remaining for Spain's biggest oil company to begin drilling off Fuerteventura and Lanzarote islands near West Africa; should Repsol discover oil, it has estimated the project would cost €7.5B ($10.2B).
Oil & Gas company in all aspects of the petroleum business, including in the exploration, development and production of crude oil, natural gas; the transportation of petroleum products and liquefied petroleum gas (LPG) and natural gas; petroleum refining; production of petrochemicals and...More