Madrid, June 6 - Neftegaz.RU. Spanish oil company Repsol has updated its 2016-2020 Strategic Plan after achieving all the goals set out in the plan two years ahead of schedule, with an aim to invest 7.9 billion euros ($9.3 bln) in its Upstream unit by 2020.
Namely, between 2018 and 2020, Repsol plans to invest 15 billion euros: 53% in its Upstream unit (Exploration and Production) and 45% in Downstream (Refining, Chemicals, Marketing, Lubricants, Trading, LPG, Gas & Power) and low-emissions assets.
In line with the updated Strategic Plan, the Upstream unit will invest 7.9 billion euros by 2020. Approximately 60% of this total will go toward growth projects and exploration, in order to increase production and ensure an optimal level of reserves in the medium and long term. Repsol said it will prioritize onshore and shallow-water projects.
An increase in production to 750,000 barrels of oil equivalent per day by 2020 will be complemented by active portfolio management and high-grading, whereby low-margin production will be replaced by higher-margin barrels.
The Strategic Plan includes a 50% increase in cash flow from operations in Upstream, to 3 billion euros, in a flat Brent price scenario of $50 per barrel.
In addition, the Upstream unit will launch a new efficiency and digitalization program with more than 600 initiatives and the objective of achieving $1 billion of additional free cash flow per year by 2020. Of this amount, $600 million-worth of projects have already been identified and achieved.