By the OGJ Online Staff
HOUSTON, July 10 -- Repsol-YPF SA, Madrid, unveiled a 5-year strategic plan that will require it to invest 23.1 billion euros ($19.6 billion).
The company will spend 41.5% on exploration and production, 28.7% on gas and power, 20.2% on refining and marketing, 4.6% on chemicals, and the remaining 5.1% on the corporation and other areas.
Repsol-YPF said 11 billion euros will be spent in Latin America, 8.4 billion in Spain, and the rest in other areas.
By the end of 2005, the company plans to reduce debt levels to 30-35%, achieve a minimum return on capital employed of 15%, and increase oil and gas production 7.8%/year.
In the exploration and production area, the company plans increased production but will seek to maintain low operating costs. It will concentrate operations in core areas and projects in which it has a competitive edge. Repsol claimed it owns 991 billion cu m of proved, possible, and probable gas reserves in Latin America.
In the gas and power segment, Repsol plans to convert its Gas Natural SDG affiliate into a multiutility that offers gas, power, and other services.
It also plans to start gas-fired combined cycle power plants at San Roque, Cadiz, and Sant Adrià de Besòs in Barcelona at the beginning of 2002.
In the refining and marketing segment, Repsol claimed it holds more than 40% market share in Spain and Argentina. It said it is the largest liquefied petroleum gas operator in Spain and in the Latin American countries in which it conducts this business.