Spanish oil and gas company Repsol will discontinue production increase in its upstream oil and gas sector, which is preparing for the energy transition. As per a person familiar with the plans of the oil and gas companies.
Repsol will present a revised business plan in June that will keep future oil and gas production at its current level and prohibit it from holding oil and gas reserves on its books for more than 8 Years, according to the source.
The reserve life of eight years would be shorter than that of many large oil companies. According to compiled data, Rosneft has 21 Years of reserves, Exxon 15 Years, BP 14 Years, Total and Chevron 12 Years, and Shell 9 Years reserves.
Earlier this month, Repsol reported a 43% increase in net upward revenue in the Q1, with the performance of the division rated as outstanding and its oil and gas production with a maximum of 727,000 barrels per day (BOEPD) Level since 2012. Of this equivalent daily production, 63% was gas and 37% was liquid.
Repsol spokesman Kristian Rix said, “The goal of our current business plan is to keep production stable.”
Repsol has already indicated that it wants to be known as an energy and not oil and gas company and that it will drive wind, solar and electric vehicles in the future, President Antonio Brufau told last week.
If Repsol abandons the growth of oil and gas production, it would be the first company in the industry.
Shell, for example, has a New Energy business and recently acquired a British company and Dutch NewMotion, one of Europe’s largest chargers of electric vehicles. However, Shell said last month that it would move away from oil if that makes commercial sense.
Further, in Europe, the Norwegian Statoil has eliminated the oil of its name and is now known as Equinor, though, it will boost investment in renewable energy, and keep on investing most of its capital in oil and gas.