Building a world of
resilient communities.

MAIN LIST

 

Repsol slashes proven oil reserves by 25%

Shares in Repsol YPF were suspended on Thursday as the Spanish oil and gas group revealed it would have to revise down proven reserves equivalent to 25 per cent of its total.

More than half of the revisions relate to Bolivia, where the company said it would make a downward adjustment of 658m barrels of oil equivalent (BOE) of gas and oil. It mainly blamed reforms to the country’s hydrocarbons law under new socialist president Evo Morales, which it said would affect investment and production.

However, rumours that Repsol had overstated its Bolivian reserves, constantly denied, have been swirling around the Spanish stock market for more than a year.

The company said: “In Bolivia, the introduction of the new hydrocarbon law has rendered future production at certain fields and several development projects no longer commercially viable.”

In neighbouring Argentina, 509m barrels are affected, Repsol said.

The downgrade by Spain’s largest oil and gas group prompted speculation that other group with operations in South America including BG, Group, BP and Total of France.

The revelation from Repsol comes 2 years after Shell was forced to downgrade its proven reserves by 20 per cent. Other oil group have also been forced to downgrade their reserves.

The company a year ago revealed that a customary three-year review of its assets had forced it to revise down by 4.1 per cent, to 4.93bn barrels of oil equivalent, its proven global reserves, mainly because of adjustments in Trinidad and Tobago, and in Argentina. Antonio Brufau, chief executive since a boardroom coup in late 2004, told analysts then that the Argentine revisions were “mainly technical” and stemmed from under-performance of some gas reservoirs.

Respol said it expected to book a write-down of “less than €50m” related to the revision of reserves.

What do you think? Leave a comment below.

Sign up for regular Resilience bulletins direct to your email.

Take action!  

Start your own projects. See our RESOURCES page.
Make connections via our GROUPS page.
Help build resilience. DONATE NOW.

 

This is a community site and the discussion is moderated. The rules in brief: no personal abuse and no climate denial. Complete Guidelines.


The Great Game in the Holy Land

Guess what? Almost all the current wars, uprisings, and other conflicts in …

North Dakota Considers Weakening Standards on Radioactive Drilling Waste as Oil Prices Collapse

As the collapse of oil prices threatens North Dakota's shale drilling rush, …

Peak Oil Notes - Feb 26

A mid-week update. Oil prices fell on Monday and Tuesday this week on …

Is the US Overplaying Its Energy Hand?

The evidence suggests the United States is playing energy poker with a pair …

Are We In The Midst Of An Epic Battle Between Interest Rates And The Oil Price?

What follows are the continuance of my research, discussions, observations …

Quakes in Gas Fields Ignored for Years, Dutch Agency Finds

A report from the Dutch Safety Board has accused the oil and gas industry …

Peak Oil Review - Feb 23

A weekly review including Oil and the Global Economy, The Middle East & …