Banco Sabadell | Repsol has been awarded 42 new exploration blocks in the latest federal licensing round in Alaska and will participate alongside Shell in a partnership in which Repsol will hold a 30% operating interest.
Assessment: Positive news, albeit of limited impact, reflecting Repsol’s commitment to North America, particularly Alaska. We note that Pikka would be one of the largest conventional onshore discoveries in the US, where the company has been strengthening its position over the last decade; it is currently preparing for the second phase of growth. The new federal award would be in addition to the one secured in November, when it acquired 45 new exploration licences. We note that Repsol expects to produce around 30-35 kbep/d from Pikka by 2028e (out of the 580-600 kboe/d target).
