LatAm drives production, earnings growth for Repsol

Repsol reported net income of 1.12bn euros (US$1.24bn) during the first nine months of 2016, up 35% on the corresponding 2015 period.

Average hydrocarbon output rose 36% to 693,800boe/d during the span, the company said, driven by its US$8.3bn acquisition of Canadian oil company Talisman Energy, as well as production growth from Venezuela, Bolivia, Brazil and Peru.

Venezuela output growth mainly came from the Cardon IV offshore gas project (pictured), a joint-venture with Italy-based Eni, CFO Miguel Martínez said Thursday during an earnings call.

During the period, Venezuelan national oil company PDVSA also secured a US$1.2bn line of credit from Repsol to accelerate production from the firms' Petroquiriquiri joint-venture.

Repsol's upstream unit reported adjusted net income of 35mn euros, compared to a 633mn-euro loss in the 2015 period.

The Spain-based company highlighted that all of its business units reported positive earnings, despite a 24% drop in the Brent crude oil benchmark and an 18% decline in the Henry Hub natural gas price.

This quarter, Repsol expects to start production from the Lapa FPSO offshore Brazil and to ramp up hydrocarbon production from Trinidad and Tobago.

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