Capex Data
Exploration & Production
Repsol-YPF plans to invest US$80-100mn a year in new exploration through 2009.
Repsol-YPF drilled 760 development wells in 2005 and plans to apply new technologies not previously used in existing fields.
Refining and Marketing
Repsol-YPF invested US$180mn in refining, logistics and marketing in 2005, which it plans to increase to US$400mn in 2006.
In July 2006, Repsol YPF announced plans to bring forward investments in Argentina under a $6 billion (EUR4.77 billion) three-year schedule for 2007/2009. $4.6 billion (EUR3.658 billion) will be allotted to the exploration and production of oil and gas in that country.
Future Plans
2003-2007 Strategic Plan
• More than 5% annual production growth
• The average margin per barrel will increase by more than 10%
• Investments of EU18,800 million
• Debt ratio to reach between 15 – 25%
• Eu900 million in recurring cost savings
• More than 14% Return on Capital Employed (ROACE)
In the 2003-2007 Strategic Plan, Repsol YPF will continue to improve operating efficiency in all the operational areas. After meeting the cost cutting target for 2005 ahead of time in 2003, which envisaged for Eu600 million in savings, Repsol YPF is now setting a more demanding target for 2007 that calls for Eu900 million in recurring cost savings.
The Strategic Plan further emphasises the financial discipline policy implemented by the Company in the last few years and sets a 15 – 25% debt/equity ratio target for this period.
For the 2002-2007 period the Strategic Plan contemplates more than 5% annual oil and gas production growth for the period 2002-2007, placing Repsol YPF among the top oil companies in terms of growth. Increased production will be compatible with higher profitability, which at the end of this period should reflect more than 10% increase in the unit production margin.
Expansion into new areas
Expansion into new areas such as Trinidad and Tobago, Libya, Venezuela, the Gulf of Mexico, Ecuador, Bolivia, and Brazil, will improve the Company's business structure and risk profile. This greater geographical diversification will go hand in hand with the consolidation of production in Argentina.
Oil and gas production in Argentina at the end of the 2003-2007 period will account for 56% of the Company's total production instead of 72% in 2002, while other countries will contribute 44% of total production.
Repsol YPF's Investment Program for 2003-2007 will reach EU18,800 million, of which 60%, Eu11,280 million would be spent in Exploration and Production; 26%, Eu4,888 million, in Refining and Marketing; 8%, Eu1,504 million in Gas & Power, and 6%, Eu1,128 in the Chemical business. Of the total planned investments, 46% would be made outside Spain and Argentina, in line with the Company's diversification policy.
Exploration and Production
The strength of current assets and the attractive projects in the portfolio will ensure that Repsol YPF's growth would be among the strongest in the sector. This growth will be compatible with a more than 10% increase in the unit margin for production.
Among the key growth driving projects in the next few years are Trinidad and Tobago - where production in the 2002-2007 period is expected to grow at an annual rate of 44% - and Libya - where besides being the leading producer, after the state company, Repsol YPF expects to increase 15% annual production growth in the next five years and expects to obtain new highly profitable exploration blocks.
After 2007, other projects will be added, such as the new projects under consideration in Algeria, Iran, Qatar, Venezuela, Argentina, and West Africa.
Capital Expenditure Plans
Repsol plan to invest US$25.3bn globally between 2005 and 2009, US$8bn of which will be directed toward its ABB division (Argentina, Brazil and Bolivia).