LONDON (ICIS)--Repsol has budgeted capital expenditure (capex) of €6.75bn in its downstream divisions – including chemicals – until 2020, the Spanish energy and petrochemicals major said on Wednesday.
Overall, the company said it would invest total capex of €15bn in both upstream and downstream during the period.
As part of its ‘Strategic Plan 2018-2020’, the company forecasts crude oil prices at an average of $50/bbl, a “conservative” prediction, it added.
Crude oil prices have been hovering around the $80/bbl mark for weeks as global geopolitical tensions and an internal crisis in key producer Venezuela have reduced supplies, as well as the 2016 agreement by some producers to freeze or cut output.
By Wednesday morning, international referential Brent futures were trading at nearly $76/bbl.
“If oil prices remain steadily higher during the period [2018-2020], the company will accelerate growth from the projects in its existing pipeline,” it said.
“These dividends will be compatible with the €15bn of investments planned for the period, with 53% allocated to the upstream unit (Exploration and Production) and 45% to downstream (Refining, Chemicals, Marketing, Lubricants, Trading, LPG, Gas & Power) and low-carbon assets."
Repsol added that out of the total €15bn in capex it plans to invest in the three-year period, €4bn of it will be new investments in downstream.
Of those €4bn, the company expects to spend €1.5bn for expansions in petrochemicals, service stations, lubricants and trading, as well as €2.5bn for low-emissions projects.
Repsol said it will aim to reduce its carbon dioxide (CO2) emissions by 2.1m tonnes by 2020, compared to 2016, “even in the growth phase” it is expecting for the period.