Repsol of Spain has changed its management structure while adopting a strategy for 2012-16 emphasizing growth in exploration and production.
The company targets growth in oil and gas production of 7%/year and a production level of 500,000 boe/d in 2016 with reserves replacement of 120% for the period.
Upstream operations will receive almost 80% of planned investment exceeding €19 billion through 2016. E&P spending will focus on exploration and 10 “key growth projects” in Brazil, the US, Russia, Spain, Venezuela, Peru, Bolivia, and Algeria. The company’s control of YPF of Argentina recently fell under the threat of nationalization, which it calls unlawful and says it will fight.
Downstream investment will decline by 50% during 2012-16 to an average of €700 million/year after a recently completed refinery expansion program (OGJ Online, Apr. 19, 2012).
Repsol says it will divest noncore strategic assets worth €4-4.5 billion.
The company reported earnings for 2011 of €2.193 billion on operating revenue of €63.732 billion. Earnings fell below the 2010 level because of extraordinary gains in 2010 and problems such as disruption in Libya in 2011.
Under the new management structure, Nemesio Fernadez-Cuesta has become chief operating officer of a unit called Business General Direction covering the General Direction for Exploration and Production and what was the General Direction for Downstream. The downstream organization has been divided into the Industrial Unit covering refining, chemicals, and new energy and the Commercial Unit covering marketing, LPG, trading and transport, LNG, and a resources group including engineering, purchases, and hiring.
Another major unit called General Direction for Strategy and Control, led by Pedro Ferandez Frial, covers strategy, technology, safety and environment, environment analysis, management control, auditing, and reserves control.
The new structure includes new executive directors: Luis Cabra for exploration and production and Josu Jon Imaz for the Industrial and New Energy Unit.