Repsol S.A.

Repsol S.A.
Type Sociedad Anónima
Traded as BMADREP
BCBA: REP
OTCQXREPYY
Industry Oil and gas
Predecessor(s) Instituto Nacional de Hidrocarburos
Founded 1986
Headquarters Madrid, Spain
Area served Worldwide
Key people Antonio Brufau Niubó (Chairman and CEO)
Products Oil and gas exploration and production, natural gas and LNG trading and transportation, oil refining, petrochemistry
Services Fuel stations
Revenue €60.43 billion (2010)[1]
Operating income €7.621 billion (2010)[1]
Profit €4.693 billion (2010)[1]
Total assets €67.63 billion (end 2010)[1]
Total equity €25.99 billion (end 2010)[1]
Employees 43,300 (end 2010)[1]
Subsidiaries Repsol Petróleo, Repsol Butano, Repsol Química, Repsol Exploración, Petronor y CLH
Website www.repsol.com
Repsol oil refinery in Puertollano.
A Repsol station service.

Repsol S.A.[2][nb 1] (Spanish pronunciation: [repˈsol]) is a Spanish multinational oil and gas company based in Madrid, Spain. It is the 15th largest petroleum refining company according to the Fortune Global 500 list,[3] employing over 40,000 people worldwide. It is vertically integrated and operates in all areas of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.

Repsol also partners with Honda Racing Corporation to compete in MotoGP under Repsol Honda Team.

HistoryEdit

Campsa and RepesaEdit

In 1927 CAMPSA (Compañía Arrendataria del Monopolio de Petróleos S.A), headed by the dictator Primo de Rivera, was created with the objective of administering concessions in handing over the state monopoly of petroleum companies. Originally the company was arranged so that the state would have a minority stake. The Creation of CAMPSA intensified the progress of the Spanish refinery industry. In 1941 the Spanish government under the Dictator Francisco Franco created the INI (National Industry Institute), in order to finance and promote Spanish industries. The INI supported CAMPSA in its exploration of Tudanca, Cantabria, a monumental moment in Spanish exploration on the Iberian Peninsula. The year 1947 marked the end of a 20-year contract between the Spanish state and CAMPSA, decentralizing services while at the same time giving specific rights to the state to intervene in the company’s affairs, minus distribution and commercialization, which remained exclusive to CAMPSA.[4]

In 1948, REPESA was incorporated for the installation of a refinery in the Valley of Escombreras (Cartagena).

'REPESA became the symbol of the increasing industrial consolidation in the refining sector, as it took on the production and marketing of petrol, oils and lubricants under its own brand name.'[5] From the beginning, REPSOL was REPESA’s "star brand" of petroleum.[6]

The Spanish government created INH in 1981 as a public organisation to integrate the various oil and gas companies in which the Spanish state had a controlling interest. INH created Repsol in 1986 as a wholly owned subsidiary, bringing together the companies in which the Spanish government had a majority ownership in the areas of exploration and production (formerly Hispanoil), refining (formerly ENPETROL), chemicals and liquefied natural gas (LNG), butane (former Butano SA), CAMPSA and Petronor, and Repsol Quimica (Alcudia).

In 1989, INH partially privatised Repsol, with an IPO of 26% of Repsol capital. Shares of Repsol, SA became listed on stock exchanges in Spain and in New York. Privatization was completed in 1997 when the Spanish government sold the remaining 10% of Repsol capital.

In 1991, the company of Gas Natural was formed.

In November 2008, LUKoil was interested in acquiring approximately 30% of the shares of Repsol (then owned 20% owned by Sacyr and 10% by Caja Madrid).

In 2009, the company entered into an agreement with Cuba to explore for oil in Cuban offshore territory.

In 2010, Repsol signed an agreement for investments estimated in US$10 billion in Iran[7]

Repsol first considered the purchase of Argentine oil company YPF in 1998, and acquired a majority interest in YPF the following year. The Petersen Group, a company of Argentina controlled by Enrique Eskenazi, agreed in 2007 to buy a percentage of YPF from Repsol. However, in 2012, Repsol fought the Argentine government's threats to nationalise its Argentine business YPF.[8] The Argentine government officially gained control of YPF later that year, by taking the Repsol holding equal to 51% of the company shares, and leaving Repsol with a small interest.[9] The Petersen Group later failed to make payments on its YPF share purchase from Repsol, and as a result, Repsol took back another 6 percent ownership, and now owns 12.43 percent of YPF.[10]

Early branding and promotionEdit

In late 1968 REPESA started to develop a prototype team for MotoGP racing and a sponsorship deal. These were the first steps in creating what would one day be know as team Repsol. Then in 1971 motor sport was relaunched in Spain and Angel Nieto won the world championship in the 125cc category sporting the Repsol logo on his bike, as a REPESA product brand.[11]

International expansionEdit

In 1999 Repsol bought 97.81% of the Argentine oil and gas company YPF S.A., which at the time was the largest oil-and-gas company in Latin America. The acquisition better positioned Repsol as a multinational company. Repsol’s acquisition of YPF also increased its capital to 288 million shares worldwide. Profits were so great that in 2000 Repsol expanded to Columbia, Cuba, Venezuela, and Chile. Then in December 2001 Repsol completed an asset exchange agreement with Petrobras, making it the second largest consolidated oil company in Brazil. The same year Repsol announced new discoveries in Libya, Indonesia, Spain, Venezuela, Argentina, and Bolivia, prompting the development and marketing of its electricity business through Gas Natural SDG.[12] In 2003 Repsol tripled its reserves and production of hydrocarbons in Trinidad and Tobago. North American expansion in 2008 saw Repsol open a massive regasification plant on the east coast of Canada with enough capacity to supply up to 20% of the gas demand for New York and New England.[13]

Expropriation of YPFEdit

The Repsol-YPF Tower of Buenos Aires.

In May 2012, the Argentine president Cristina Fernández de Kirchner, presented a project before the government to expropriate 51% of Repsol’s shares of YPF. The Republic of Argentina's Yacimientos Petrolíferos Fiscales Act that was passed that summer officially made possible the expropriation of Repsol's Shares. Repsol went to various international entities to pursue legal action directly after losing its shares of YPF.[14] The expropriation was an attempt by the Argentine government to nationalize its oil and gas production. Results however show that the move to nationalize actually hurt oil production in Argentina. Compared to the oil production in 2011, YPF’s oil production in 2012 fell by 8%, according to data from Argentina’s Department of Energy.[15] Repsol has the backing of the EU and the US, as both powers condemned Argentina’s move at expropriation. President Fernández claimed that the state would seize 51% of YPF.[16] In June 2013, Repsol rejected a $5 billion proposal from Argentina to compensate for the 2012 expropriation. The proposal also would have given Repsol drilling rights to 6.4% of the massive Vaca Muerta shale-gas field. The board of the Repsol firm unanimously denied this offer, as it would have caused them to drop a $10.5 billion lawsuit that was in progress against the Argentine government. Repsol at the time owned 6.4% of YPF oil-and-gas company.[17] On February 25, 2014 the Repsol board announced it had accepted a settlement offer from the Argentine government of an issue of Argentine bonds valued at $5 billion. The deal concluded after 3 months of negotiations in Buenos Aires was subject to shareholder approval. The agreement ended two years of legal wrangling and the potential for a long drawn-out legal battle. Repsol Chairman Antonio Brufau described the "friendly" settlement as "extremely positive." [18]

Environmental recordEdit

In 2011 Repsol built the world's first service station certified by BREEAM, "the leading international method for evaluating and certifying building sustainability". The construction of the station was completed under green architecture parameters, utilizing multiple recycled materials.[19] The publication Newsweek selected Repsol as the most environmentally respectful energy company of 2012.[20] However, recent reports of Repsol drilling in the indigenous lands of the Peruvian Amazon display a disregard for the environment. According to an Environmental Impact Assessment, Repsol’s exploration of the rainforest will involve drilling at least 21 wells. Although Repsol denies it, 20 of the 21 wells fall within the land of indigenous people, who are very vulnerable to any sort of contact with foreigners.[21]

See alsoEdit

ReferencesEdit

NotesEdit

  1. ^ Originally an initialism for Refinería de Petróleos de Escombreras adding the word Sol (Sun)

External linksEdit

Last modified on 7 April 2014, at 20:19