Spain’s Repsol agreed to sell Canada assets to Peyto for $468 million
- September 7, 2023
- Posted by: Quatro Strategies
- Categories: Americas, Europe, Oil & Gas
Canadian natural gas company Peyto Exploration & Development has agreed to purchase Repsol’s assets in Canada for $468 million. This acquisition includes Repsol Canada Energy Partnership, which encompasses upstream oil and gas operations, along with related midstream facilities and infrastructure, primarily located in Alberta’s Deep Basin.
Peyto’s CEO, Jean-Paul Lachanc, expressed the strategic alignment of these assets with Peyto’s existing Deep Basin acreage. He noted that the acquisition offers numerous high-quality undeveloped locations that will immediately compete for capital within their portfolio. This deal is expected to close in mid-October.
Repsol’s decision to sell these assets is part of a broader strategy to focus its oil and gas production in specific countries, such as the United States and Brazil. Last year, the company sold a portion of its assets in Alberta to Teine Energy, a company backed by the Canada Pension Plan Investments Board.
The acquisition of Repsol’s Deep Basin assets will enhance Peyto’s production, adding approximately 23,000 barrels of oil equivalent per day (boepd), primarily comprising natural gas. This move strengthens Peyto’s position in the Canadian energy sector and aligns with its growth objectives in the region.
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