Repsol to invest €19.1 billion over four years, mainly in upstream projects

Spanish oil giant Repsol said today it planned to invest €19.1 billion over the next four years, mostly to develop recently discovered wells and in new explorations.

"Nearly 80 per cent of the investments of the group are destined for upstream, which is the growth motor of the group," it said in a statement to outline its strategic plan for 2012-16.

This comes as the first of the company's plans released since Argentine president Cristina Kirchner on 4 May signed a bill nationalising oil and gas producer YPF, in which Repsol had a 51 per cent stake.(See: Argentina renationalises YPF; appoints new CEO)

According to Repsol, it had identified 10 "key growth projects" for its investments in 2012-16 in Algeria, Brazil, Bolivia, Russia, the US, Spain, Peru and Venezuela.

The company said it planned to pump 500,000 barrels of oil equivalent a day by 2016, an annual production growth rate of over 7.0 per cent during the period. Repsol had earlier projected growth of 3.0-4.0 per cent for the period.

It predicts its 2016 net profit would be 1.8 times the €1.7 billion it posted last year, boosted by the increase in production.