Repsol has completed the sale of liquefied natural gas (LNG) assets with the handover to Shell of assets in Peru and Trinidad & Tobago after the relevant authorisations have been obtained. In October 2013, Repsol sold its stake in Bahía Bizkaia Electricidad (BBE) to BP, which exercised a purchase option over the asset.

The combined transactions represent total proceeds for Repsol of $4.3 billion (of $4.1 billion from the sale of assets to Shell and $0.2 billion from the sale of BBE to BP), and the company additionally sheds financial commitments and non-consolidated debt in line with the figures announced in February 2013 when the assets´ sale was agreed.

The sale, which includes the minority stakes in Atlantic LNG (Trinidad & Tobago,) Peru LNG and BBE as well as the LNG sale contracts and time charters with their associated loans and debt, has generated approximately $2.9 billion for Repsol in profit and capital gains after tax, slightly higher than the guidance given when the transaction was agreed in February.

As a consequence of the transferral of assets, and in line with the company’s policy of financial prudence, Repsol will adjust the book value of the North American assets with a provision of $1.5 billion after tax, in line with new fiscal regulations. The resulting capital gains yet to be booked will be included in the accounting of 2013 and 2014, in accordance with the transferral date of the assets included in the agreement.

Repsol and Shell have additionally signed an LNG supply agreement by the latter to the Canaport regasification terminal in Canada of approximately 1 million tons over a 10-year period.

Following the completion of the sale, with an economic date set at 30th September 2012, Repsol reduces net debt by $3.3 billion and significantly strengthens its balance sheet.

With this transaction, Repsol has divested assets for more than 5 billion euros, surpassing the objectives outlined in the 2012-2016 Strategic Plan to divest between 4 and 4.5 billion euros in the period.

About Repsol

Repsol is an integrated global energy company with vast sector experience. It carries out Upstream and Downstream activities throughout the entire world.

About Royal Dutch Shell plc

Royal Dutch Shell plc is incorporated in England and Wales, has its headquarters in The Hague and is listed on the London, Amsterdam, and New York stock exchanges. Shell companies have operations in more than 70 countries and territories with businesses including oil and gas exploration and production; production and marketing of liquefied natural gas and gas to liquids; manufacturing, marketing and shipping of oil products and chemicals and renewable energy projects.

About BP

BP is one of the world's largest oil and gas companies, serving millions of customers every day in more than 80 countries, and employing nearly 85,000 people. BP's business segments are oil and gas exploration & production, and refining & marketing. In alternative energies, BP has low- and no-carbon wind and biofuels businesses. Through these activities, BP provides fuel for transportation; energy for heat and light; services for motorists; and petrochemicals products for plastics, textiles and food packaging. It has strong positions in many of the world's hydrocarbons basins and strong market positions in key economies.

See the site of Atlantic LNG

See the site of Peru LNG