Repsol YPF's (NYSE: REP) sale of a 1.08% stake in Bolivian E&P company Andina will not impact the Spanish oil major, according to Repsol YPF COO Miguel Martínez.
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Repsol sold the share to Bolivia's state hydrocarbons company YPFB earlier this month to comply with President Evo Morales' nationalization decree, which called for the government to regain a controlling stake in oil and gas companies.
YPFB now holds just over 50% of Andina after paying US$6.24mn for the 1.08%. Repsol owns nearly all the rest.
"This will mean that we will have to change the way we consolidate Andina, although in economic terms the change will have no impact whatsoever at the net level," Martínez said in a webcast.
"After deconsolidation of Andina that will take place in this second quarter, production will be approximately 30,000boe/d" net to Repsol, said the executive, adding: "It should be stressed however that with this change we have improved our return per barrel."
Production has been 50,000boe/d since May 1, 2006, when participation contracts were turned into service provider contracts as part of the nationalization process, the executive said.
