Repsol's 2021 upstream output drops 12% to six year low of 572,000 boe/d

Spanish energy group Repsol's upstream oil and gas production fell 12% year on year to 572,000 b/d of oil equivalent in 2021, its lowest annual volume in six years, as production fell in three of four regions on an annual basis, it said in a regulatory filing Jan. 18.

Production in North America showed the steepest descent, falling 22% year on year to 154,000 boe/d, with fourth quarter volume even lower at 145,000 boe/d. Output from Asia, Russia and the Rest of World region fell 20% in the full year to 55,000 boe/d with a Q4 average output of 47,000 boe/d.

The company boosted its presence in the US with the purchase of shale assets in the Marcellus field for $222 million Jan. 5, while it has an announced strategy of exiting some of its minor plays.

This will include a full exit from the Russian market in 2022, where it has been present since 2010, following an agreement Jan. 12 to sell its remaining upstream assets to Gazprom Neft.

In other regions, Repsol reported a 10% decline in 2021 production from Latin America to 266,000 boe/d, with an uptick to 283,000 boe/d in the fourth quarter. Europe and Africa production was lifted by consistent Libyan volume, taking output from the region 13% higher in 2021 to 97,000 boe/d, although this includes a 12% annualized decline to 85,000 boe/d in the fourth quarter.

All results are provisional with final quarterly figures to be presented Feb. 17.

Refining margins

In the downstream business, the company reported an estimated refining margin indicator of $2.40/b in the full year, an increase of 20 cents/b from 2020.

For the fourth quarter, the margin widened to $4.40/b, a 38% increase year on year and the widest quarterly margin since Q1 2020.

Repsol increased its refinery utilization rate by 2 percentage points in the year from 74% in pandemic-hit 2020 to 76% in 2021 although its conversion rate decreased from 86% to 83% over the period, despite an increase in the fourth quarter to a 87% rate.

The petrochemical margin indicator was Eur1,364/mt for the full year, a 58% increase year on year, it said. The fourth quarter indication was Eur1,390/mt, up 61% year on year.

Repsol owns and manages five refining complexes in Spain at Cartagena, Corunna, Bilbao, Puertollano and Tarragona, with a total capacity of around 896,000 b/d.