Escape Route: Brazilian Oil Field Will Limit Repsol’s Exposure to Argentina
The Guara field in Brazil’s Santos Basin may not be the panacea to Repsol YPF’s”Argentina” problem. Still, the Guara field’s better-than-expected oil estimates promise to provide a powerful boost to the Spanish company’s reserves and ultimately limit its exposure to Argentina. Repsol’s Argentine arm YPF has faltered in recent years as the country’s increasing nationalism has created economic, political and regulatory problems. For the past two years, YPF earnings have suffered from caps placed on oil prices. Repsol, which owns 84 percent of YPF, has been trying to sell off all or at least part of its stake in the company and shift its revenues to other countries with more promising oil fields. Enter Brazil. Recent tests of the Guara field found recoverable volumes of light…
0 Comments