Shell buys Repsol SA gas assets for $4.4bn in cash
Royal Dutch Shell bought liquefied natural gas assets for $4.4 billion in cash from Repsol SA as Spain’s largest oil company tries to cut debt and avoid a ratings downgrade to junk.
Shell, the world’s largest LNG supplier, will buy assets including export capacity in Peru and Trinidad and Tobago, the company said yesterday.
Shell assumes some debt but the Canaport terminal in Canada, which imports gas into North America, was excluded from the deal. Repsol, which will book a $3.5 billion capital gain, is selling assets to keep its investment rating.
Moody’s Investors Service cut its rating to one level about junk and gave the company a negative outlook after Argentina seized its YPF business in April without compensation. YPF made up almost half of Madrid-based Repsol’s oil reserves. – (Bloomberg)