Spain's Repsol sells off LNG assets to Royal Dutch Shell for US$4.1 bil.
AFPMADRID -- Spanish oil group Repsol announced Thursday it has sold liquefied natural gas (LNG) assets to Royal Dutch Shell for US$4.1 billion (3 billion euros), slashing its heavy debt load.
January 3, 2014, 12:02 am TWN
Repsol handed over its LNG assets in Peru and Trinidad and Tobago to Shell, the world's biggest LNG supplier, as part of a huge debt-reduction plan.
The Spanish group has been fighting to regain its financial footing, and avoid a credit rating downgrade to junk-bond status, since Argentina's shock 2012 seizure of its profitable YPF subsidiary.
The sale of Repsol's LNG assets to Shell followed a smaller US$200 million sale of a Basque power plant to BP in October, bringing in a combined US$4.3 billion to the Spanish group.
The sale generated a net US$2.9 billion in profits and capital gains for Repsol, the Spanish group said, more than had been anticipated when the deal was first announced in February 2013. As a result, Repsol cuts its net debt by US$3.3 billion, “and significantly strengthens its balance sheet,” it said.