Spanish oil major Repsol announced Thursday that it has agreed to sell its Chilean butane business for $540 million as part of its strategic plan to focus on upstream investment.
Repsol said that it will make a profit of $170 million from the sale of Repsol Butano Chile to a consortium of investors, who are led by LarrainVial Chile.
The transaction is Repsol's first divestment of non-core assets since it announced its new upstream-focused strategy at the end of May. Back then, Repsol said that its plan for 2012 to 2016 is to use its upstream unit to drive growth across its whole business and that this would include a focus on 10 key upstream projects around the world.
Part of the funding for Repsol's focus on upstream will come from cash generated by its downstream assets as well as that generated through the divestment of certain non-core assets, such as Repsol Butano Chile.
Repsol also indicated that it is looking to divest further non-integrated downstream assets in Latin America.
Across the Andes, in Argentina, the firm saw its YPF subsidiary nationalized by the government of Christina Fernández de Kirchner in mid-April.
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