Alaska in Repsol’s strategic plan

Alan Bailey

Petroleum News

Spanish major, Repsol, in a 2018 to 2020 update to its strategic plan, makes mention of the company’s opportunities in Alaska. The plan update references Alaska as one of five areas worldwide earmarked for development projects. The five areas have a combined breakeven oil price, the price at which development projects become viable, of $42. The strategic plan assumes a Brent oil price of $50 per barrel.

Repsol is partnering with Oil Search and Armstrong Energy in the development of the huge Pikka/Horseshoe prospect, to the east of the Colville River delta. The prospect involves a major oil find in the Nanushuk formation as well as oil in Alpine sands.

The full version of Repsol’s plan, originally published for years 2016 to 2018 but now dated June 2018, characterizes the company’s Alaska oil interests as “advantaged oil” and one of the company’s high-margin assets. The plan indicates a breakeven oil price of less than $45 for the company’s Alaska venture, with first oil anticipated around 2023-24.

- ALAN BAILEY