August 11, 2017 / 9:18 PM / 2 years ago

Repsol Sinopec sees stable output through 2020

RIO DE JANEIRO (Reuters) - Brazil-based Repsol Sinopec expects oil and gas output to remain steady at an average of 90,000 to 100,000 barrels of oil equivalent per day through 2020, the firm’s chief executive told Reuters as part of the Reuters Latin American Investment Summit.

In an interview on Friday, CEO Leonardo Junqueira said the firm, a joint venture between Spain’s Repsol SA (REP.MC) and China’s Sinopec (600028.SS)(0386.HK), would not bid in a September oil block auction, as it focuses on exploiting its current assets in Brazil.

“We have built this portfolio in recent years to keep this level between 2017 and 2020 as the conclusion of the first investment cycle,” Junqueira said, referring to the 90,000 to 100,000 range.

“It doesn’t mean that we won’t invest to boost production,” he added, leaving the door open for future investments.

Junqueira said the company is studying participating in bidding rounds for Brazil’s offshore pre-salt fields slated for October.

Repsol Sinopec, Brazil’s third largest producer behind state-controlled Petroleo Brasileiro and Shell, produced nearly 99,000 boe per day on average in June, government data shows.

One of Repsol Sinopec’s key assets is its 35 percent stake in the BM-C-33 block in the pre-salt Campos basin, which includes the promising Pao de Acucar prospect.

“The Pao de Acucar project is going to create robust growth in production and probably exceed 100 thousand barrels (of oil equivalent per day) by a lot,” Junqueria said.

(Follow Reuters Summits on Twitter @Reuters_Summits)

Reporting by Marta Nogueira and Alexandra Alper; Editing by Sandra Maler and David Gregorio

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