Repsol YPF has reached an agreement with Totalgaz, a subsidiary of Total for the sale of its liquefied petroleum gas business (LPG) in France, reported sources close to the transaction to Europa Press.
The oil company, chaired by Antonio Brufau, has carried out this sale as part of its strategy of divesting from ‘downstream’ non-integrated assets with which it has already generated more than $1.2 billion (€945 million) in five years. In the agreement with Total, the transaction will be closed for a value close to €14.5 million and it will affect the subsidiary Repsol France that is dedicated to the distribution of LPG in France.
Repsol LPG business in France had sales equivalent to a volume of 15,000 metric tons in 2010 in southern and eastern France. The sale of ‘downstream’ non-integrated assets is part of Repsol’s strategic plan, which proposes to concentrate its efforts within the LPG industry in the markets in which it operates in order to maintain and enhance its leadership position.
Of the divestments undertaken in recent years as part of this strategy, the most significant sale was that of Petrobras in December 2010 of the Brazilian refinery Refap for about $850 million (€670 million). In 2008, the oil company let go of its fuel distribution business in Ecuador, Brazil and Chile, and in 2011 it sold for $27 million (€21 million) the LPG business in Brazil.