Repsol mulls exit from BP’s Tangguh LNG project in Indonesia
By MANUEL BAIGORRI and DINESH NAIR
Bloomberg
Repsol is considering selling its stake in Tangguh LNG, one of Indonesia’s largest liquefied natural gas (LNG) projects, as Spain’s biggest oil company seeks to reduce debt, according to people familiar with the matter.
Repsol’s 3.1% stake in the gas fields, operated by BP, may fetch as much as $300 million in a sale, the people said, asking not to be identified as the deliberations are private. Repsol is working with Goldman Sachs Group to help identify buyers for the stake, the people said.
There is no guarantee that a deal will be agreed, and Repsol may also decide to retain the stake, according to the people.
Repsol, like other oil producers, is suffering from a global glut that’s pushed the price of oil to near its lowest level in more than six years. The company has sold assets and cut investments this year to weather the slowdown and to help reduce debts after acquiring Canada’s Talisman Energy for $13 billion in May. Repsol owns the Tangguh stake through Talisman.
Ownership of Tangguh is split among BP and seven partners. The British oil company is the largest holder with a 37% stake. Tangguh started production in 2009, according to BP’s website.
Representatives for Repsol and Goldman Sachs declined to comment.
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