Repsol Plans $2B Investment at Carioca Pre-Salt Find

MADRID (Dow Jones Newswires), Jan. 19, 2009

Spanish oil company Repsol YPF SA plans to spend EUR500 million from 2008 to 2012 to develop the Carioca find in Brazil's pre-salt oil region, the company said in a presentation to fixed income investors Monday.

Repsol has a 25% stake in the Santos Basin BM-S-9 block that contains the Carioca find. Brazil's state-run oil firm Petroleo Brasileiro SA (Petrobras) holds a 45% operating stake in the block, while BG Group holds 30%.

The consortium hasn't made an official reserve estimate for Carioca yet, but the head of Brazil's petroleum agency in April said the find could contain 33 billion barrels of oil equivalent, possibly making it one of the biggest oil finds ever.

Repsol in its 2008 to 2012 capital expenditure plan in total has earmarked EUR12.3 billion in investments in key growth projects in its upstream, downstream and liquefied natural gas areas.

As a consequence of the economic downturn, however, Repsol warned that it is revisiting projects and investments.

The company also said that on Dec. 31, its gross debt excluding debt from its holding in Gas Natural reached EUR6.23 billion.  

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