Canadian natural gas firm Peyto Exploration & Development has agreed to buy Spanish energy company Repsol’s assets in Canada for $468 million, the two companies said in separate statements.
Repsol Canada Energy Partnership includes an upstream oil and gas business and related midstream facilities and infrastructure located predominantly in the Deep Basin in the province of Alberta.
“The Repsol assets fit perfectly with Peyto’s existing Deep Basin acreage and offer a significant number of top-tier undeveloped locations that will immediately compete for capital within our portfolio,” Peyto CEO Jean-Paul Lachanc said in a statement.
Repsol said the sale is part of a strategy to focus its oil and gas production on a few countries such as the United States and Brazil.
The company sold part of its assets in Alberta to the Canada Pension Plan Investments Board-backed Teine Energy a year ago.
Repsol’s Deep Basin assets will add about 23,000 barrels of oil equivalent per day (boepd) production, mainly gas, Peyto and Repsol said.
The deal is expected to close in mid-October.
Source: Reuters.com