Repsol Sinopec gets rebrand after $2.1bn dispute deal is closed

Aberdeen-headquartered Repsol Sinopec Resources UK has been renamed as Repsol Resources UK.

Repsol Sinopec, the UK North Sea business of Spain’s Repsol (BME: REP),  rebranded after an-eight year arbitration case was closed with the former co-owner, China’s Sinopec.

In May, the two energy firms agreed a $2.1bn deal which settled a dispute which kicked off in 2015.

Conditions of the deal were satisfied by October 9.

A Repsol Resources UK spokesperson added: “The company will be called Repsol Resources UK Limited and will begin a transition into the Repsol organisation.

“We remain focused on the delivery of our corporate strategy and business plan. As always, we prioritise the safety of our operations and the health, safety and well-being of our people.”

Sinopec launched proceedings after arguing the $1.5bn price paid by its subsidiary – Addax-  for 49% of the business in 2012 (then Canadian-led Talisman Energy’s UK North Sea business) was too high.

The new deal means Repsol has acquired Sinopec’s 49% stake to become 100% owner of what is now called Repsol Resources UK.

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According to its latest set of accounts, the UK firm has 884 employees.

Repsol Resources has interests in 48 fields in the UK North Sea, of which it operates 38.

The firm has work in decommissioning of those assets, and has been making moves in low-carbon energy like hydrogen at its Flotta oil terminal in Orkney.

The North Sea business reported profits of more than $600m for 2022, more than treble the prior year on the back of higher oil and gas prices.

Madrid-headquartered Repsol said in a stock exchange announcement May that it had made provision in its accounts for the arbitration, meaning “no significant impact” on earnings, though it still amounted to a $1.1bn.

The Spanish energy giant produces an average of 550,000 barrels of oil equivalent per day.