Repsol acquires Talisman Energy

Spanish firm Repsol announced on Tuesday that it has agreed with Talisman energy to acquire 100 percent of the shares of the Canadian company for US$8.3 billion, plus assumed debt of $4.7 billion.

The deal will transform Repsol into one of the world?s largest privately-owned energy groups, with increased presence in OECD countries, incorporating reserves and production in politically stable countries. Additionally, it will add a significant exploration portfolio and high-quality productive assets in North America (Canada and U.S.), South-East Asia (Indonesia, Malaysia and Vietnam) as well as Colombia and Norway, amongst others.

Once the transaction is complete, North America?s weight in the resulting company will increase to almost 50 percent of capital employed in exploration. Latin America will represent 22 percent.

The incorporation of Talisman will increase the output of the Repsol Group by 76 percent to 680,000 barrels of oil equivalent per day, and will boost reserves by 55 percent to 2,353 billion barrels of oil equivalent. The resulting group will be present in more than 50 countries with over 27,000 employees.

Repsol Chairman Antonio Brufau said: ?This is a transformative and exciting deal which will make us one of the world?s most significant players and which will allow us to grow as a company and reinforce Repsol as a solid and competitive integrated player.?

?Talisman is an excellent company which will add its experience and proven track record in production assets that will add to that of Repsol in deep water exploration. This will significantly boost joint development.?

?The agreement with Talisman is the result of an exhaustive analysis of more than 100 companies and assets worldwide. In every area, Talisman has always been the best option, because of the excellent quality of its complementary global assets, including its talent. With Repsol?s ability to support the growth of these assets there is much value to be realized - it is a win-win situation? said Josu Jon Imaz, the Chief Executive Officer of Repsol.

Following the transaction, the largest international deal by a Spanish company in the last five years, Repsol will be amongst the 15 largest privately-owned oil and gas companies in the world, present in key areas and with the most potential worldwide. Repsol will retain the significant complementary talent which it has recognized in the workforce of Talisman.

Editing by Johannes Simbolon