Upstream
Flexibility and efficiency

Repsol's Upstream area encompasses our oil and natural gas exploration and production activities. We have a balanced and diversified assets portfolio focused on strategic production areas such as North America, Southeast Asia, and Latin America. We carry out projects that generate value even in the current oil and gas price scenario, focusing on onshore, non-conventional, and offshore in shallow waters.

The business strategy is to generate value and show resilience through the management of the assets portfolio and cost efficiency, maintaining a firm commitment to safety and the environment.


Upstream
 

Increase
in production

 

23%

 

 
Reserves

 

2,382

Billion barrels
of oil equivalent

 

 
 

 

103%

Reserve-replacement
ratio

 



imagen
65%

of our
production

75%

of our
reserves

imagen

Efficiency
and synergies
program
Vastly exceeded
the target set
for 2016


+900

million euros
in savings



Milestones 2016

April

April

Start of production in the Perla 9 well in the Perla mega gas field (Venezuela), one of the largest onshore gas fields in Latin America


May

May

Record production of 1 trillion cubic feet in the Marcellus field (Pennsylvania, United States), one of the largest and most prolific shale gas fields in the world


October

October

Signing of agreement to extend operations in the Caipipendi block (Bolivia) for an additional 15 years, until 2046


December

December

Start of production in the Lapa offshore field, located in the Brazil pre-salt, generating a production of 7,200 barrels of oil equivalent per day


December

December

Resumption of activity in the Sharara field (Libya), with an initial production of 20,000 barrels of oil per day

Milestones 2017

imagen

March

Announcement of the largest discovery of conventional oil in the United States in the last 30 years, with estimated resources of around 1.2 billion barrels of recoverable light crude

 

 

 

Upstream

In 2016 our Upstream area participated in exploration and production projects in 30 countries, holding mineral rights on a surface area of 490,894 km2 (189,535 sq. mi.) as of December 31st.

The proportion of gas in our production assets portfolio increased to 65%. As of December 31st, gas production had grown 27% from 352,000 to 447,000 barrels of oil equivalent per day.

This area's flexibility and adaptability were key to improving its adjusted net earnings by 977 million euros with respect to 2015. The diversity and quality of our assets portfolio has allowed us to focus on projects that generate value amid current crude prices.

Another essential aspect was the efficiency and synergy program, which achieved savings of over 900 million euros. Thanks to investment control and the improved operational efficiency, we have greatly exceeded the envisaged objective for the year.


ADJUST NET INCOME
€ Million 2015 2016 Variation
Europe, Africa and Brazil (124) 167 291
Latin America
(27) 234 261
North America
(124) 9 133
Asia and Russia
19 (4) (23)
Exploration and others
(669) (354) 315
Adjust net income
(925) 52 977
 

Production

In 2016, our average net production reached 690,200 barrels of oil equivalent per day, up 23% from 2015. This increase was due mainly to the contribution of the assets stemming from the purchase of Talisman, now called Repsol Oil & Gas Canada Inc (ROGCI), which made it possible to increase average production by 113,400 barrels of oil equivalent per day in 2016. In 2015, the ROGCI's production was incorporated into Repsol's production, from the effective purchase date: May 8th.

Additionally, the increase in production of Cardón IV (Venezuela), the new wells of Sapinhoá Norte (Brazil), the incorporation of the Gudrum field (Norway), and the increase in gas obtained from block 57 (Peru) are worthy of note. These projects helped to offset the decreased activity in Trinidad and Tobago due to the different maintenance projects, the sale of 26% of the ownership interest in Eagle Ford in the United States, and the temporary closure of the Akacias field in Colombia motivated by low crude prices.


NET PRODUCTION OF LIQUIDS AND NATURAL GAS
BY GEOGRAPHICAL AREA
   PRODUCTION WELLS
BY GEOGRAPHICAL AREA
  Liquids (Mbbl) Natural gas (bcf) Total (Mbep)   Oil Gas
  2015 2016 2015 2016 2015 2016   2015 2016 2015 2016
Europe 9 16 7 17 10 19   231 236 2 3
   Norway 3 7 6 16 4 10   67 60 - 1
   U.K.
5 8 1 1 5 8   154 166 1 1
   Rest of Europe 
1 1 - - 1   10 10 1 1
Latin America
 35 39 419 486 110 125   1,130 953 233 216
   Brazil
11 14 3 5 12 15   26 28 - -
   Colombia
4 5 10 11 6 7   414 395 17 -
   Peru
4 5 52 68 13 17   - - 27 27
   Trinidad & Tobago
4 4 216 188 43 37   91 - 55 55
   Venezuela
5 5 69 129 17 28   376 324 34 32
   Rest of Latin America
7 6 69 85 19 21   223 206 100 102
North America
18 20 182 262 51 67   2,852 2,924 2,664 2,610
   Canada
5 8 48 82 14 23   1,151 1,126 1,593 1,574
   United States
13 12 134 180 37 44   1,701 1,798 1,071 1,036
Africa 3 3 16 16 5 6   86 128 78 79
Asia and Oceania
10 11 98 137 28 36   619 621 99 91
   Indonesia
1 1 63 94 12 18   89 55 55 45
   Malaysia
3 4 19 28 6 9   87 90 36 38
   Russia
4 4 15 14 7 7   403 448 8 8
   Rest of Asia and Oceania
2 2 1 1 3 2   40 28 - -
TOTAL
75 89 722 918 204 253   4,918 4,862 3,076 2,999
 

Reserves

On December 31st, 2016, the company's proved reserves amounted to 2,382 Mboe, of which 584 Mboe (25%) corresponded to crude oil, condensed oil, and liquefied gases, and the rest 1,798 Mboe or 75% to natural gas. These reserves were estimated in accordance with the criteria established by the Petroleum Reserves Management System of the Society of Petroleum Engineers.

The evolution of reserves was positive, with the total incorporation of 261 Mboe mainly due to extensions and discoveries in Peru, the United States, and Canada; reviews of previous estimates in Trinidad and Tobago, Peru, and Venezuela; and improved recovery in Brazil.

In 2016 we achieved a reserve replacement ratio (quotient between the total incorporations of proven reserves in the period and production in the period) of 103% for crude oil, condensed oil, LPG, and natural gas (96% in crude oil, condensed oil, and LPG and 107% in natural gas). This is an example of how we incorporate resources that significantly strengthen the company's future growth and help us achieve our long-term objectives.