Upstream

Repsol releases its 2020 upstream output report: an 8% global decrease

Repsol

Repsol, the Spanish energy group, reported Tuesday that its estimated upstream oil and gas production in 2020 decreased 8% compared with its 2019 results, representing 648,000 b/d of oil equivalent. This result is the Company’s lowest annual total since the 2015 purchase of Talisman.

However, according to the Company, this full-year total remains in line with Repsol’s upstream post-pandemic revised target of 650,000 boe/d. Furthermore, the Company registered an output increase in the North American region.

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Repsol: upstream output results in 2020

Spanish energy group, Repsol, announced the release of its upstream production report. According to the document, last year, the Company decreased 8% its oil and gas production. This reduction is equivalent to 648,000 boe/d.

Nevertheless, Repsol representatives pointed out this reduction is in line with the Company’s post-pandemic revised targets. The new goals include an upstream production target of 650,000 boe/d by 2030.

By region, Europe and Africa showed the sharpest production decline in 2020, falling 29% from 2019 and representing 86,000 boe/d. Although Repsol’s share in the Libyan El Sharara field can supply up to 39,000 boe/d net to the Company, it suffered several interruptions throughout the year. Furthermore, the group experiences a shutdown in January 2020 and a blockade of oil terminals.

Europe’s and Africa’s output did increase 37% from the third quarter to 96,000 boe/d in the fourth quarter. However, this result still represents a decline of 23% compared to 2019 numbers.

Other regions also returned negative numbers for 2020, with Latin American production down 11% (295,000 boe/d) and production in the Asia/Rest of the world region dropping 5% a year (69,000 boe/d).

North America was the only region with increased production for the Company, where Repsol boosted output by 9% at 198,000 boe/d. This result came after the Company upped its interest in Eagle Ford during 2020 and reported resilient operating economics at two other US operations –Marcellus and Buckskin.

Declines and increases: different for each sector

For the fourth quarter, however, all four of its global regions reported declining volume on an annual basis for a combined total of 628,000 boe/d, a 14% decline from a record quarter in Q4 2019 730,000 boe/d.

The Company noted that all of its production figures are provisional, with confirmed results due to be published on Feb. 18.

The group said its refining margin (downstream) in Q4 2020 returned to positive, rising to an estimated $1/b from minus ten cents/b in Q3. However, this result is still lower compared with a $5.60/b margin in Q4 2019.

“The full-year average refining margin indicator in 2020 was $2.20/b, down from $5/b in 2019. The refinery utilization rate for the year came at 74%, including 73.6% in Q4. This compared with an 88.4% rate for full-year 2019 and 85.7% in Q4 2019,” the Company reported.

“The conversion rate was even more heavily impacted by the pandemic-related economic slowdown, falling to 86% in 2020 and 77.3% in Q4, compared with 103.3% in 2019 and 104.3% in Q4 2019.”

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