Upstream
operational efficiency

Repsol's Upstream area carries out oil and natural gas exploration and production activities. We have a balanced asset portfolio focused on strategic production areas such as North America, Southeast Asia, and Latin America.
632 million euro
Adjusted net
income

million euros
Luis Cabra Separador

“In Upstream, we focus on improving the profitability of our assets and operations. This will make us stronger and allows us to add more value, regardless of oil and gas prices.”

Luis Cabra

Executive Managing Director of Upstream

Average net
production
695 thousand
Net proved
reserves
2.355 billion
Percentage of gas in our asset portfolio
63%
74%

2017 Milestones

Alaska

Trinidad and Tobago

1.2 billion barrels of crude

Alaska

March 2017

Biggest onshore conventional
oil discovery in 30 years

on U.S. soil, with estimated resources
of approximately 1.2 billion barrels
of recoverable light crude.

2 trillion cubic
feet of gas

Trinidad and Tobago

June 2017

The largest gas discovery
made by Repsol in the last five
years
and the biggest
in Trinidad and Tobago in a decade
Resources are estimated
at approximately 2 trillion cubic
feet of gas, equivalent to two years of gas consumption in Spain.

Malaysia

Kinabalu

Malaysia

October 2017

Start of crude production
in the redevelopment project at the
Kinabalu field in Malaysia,
following the installation of a new
platform in June 2017.

Peru

Sagari field

Peru

November 2017

Start of gas production
in the Sagari field
. The equivalent
of approximately a quarter
of the gas consumed
in Peru is extracted
from this field.

Algeria

Reggane Nord

Algeria

December 2017

First gas at the Reggane
Nord gas project in Algeria
.
Maximum production capacity
— eight million cubic meters
of gas per day — is expected
to be reached during 2018.

Platts

Award for the world’s leading E&P company

Platts

December 2017

Alaska

Alaska

1.2 billion barrels
of crude

March 2017

Biggest onshore
conventional oil discovery
in 30 years
on U.S. soil,
with estimated resources
of approximately 1.2 billion
barrels of recoverable
light crude.

Peru

Sagari field

Peru

November 2017

Start of gas production
in the Sagari field
.
The equivalent of approximately
a quarter of the gas consumed
in Peru is extracted from
this field.

Algeria

Reggane Norte

Algeria

December 2017

First gas at the Reggane
Nord gas project in Algeria
.
Maximum production capacity
— eight million cubic meters
of gas per day — is expected
to be reached during 2018.

Trinidad
and Tobago

2 trillion cubic
feet of gas

Trinidad and Tobago

June 2017

The largest gas discovery
made by Repsol in the last
five years
and the biggest
in Trinidad and Tobago
in a decade Resources are
estimated at approximately
2 trillion cubic feet
of gas, equivalent to two
years of gas
consumption in Spain.

Malaysia

Kinabalu

Malaysia

October 2017

Start of crude production
in the redevelopment project
at the Kinabalu field
in Malaysia
, following
the installation of a new platform
in June 2017.

Platts

Platts

Award for the world’s
leading E&P company

December 2017

Upstream data
by region

Upstream data by region

North America

Net production

Million barrels
of oil equivalent

63

Proven reserves

Million barrels
of oil equivalent

504

Net surface area

km2

10,737

Latin America

Net production

Million barrels
of oil equivalent

127

Proven reserves

Million barrels
of oil equivalent

1,490

Net surface area

km2

52,238

Europe

Net production

Million barrels
of oil equivalent

19

Proven reserves

Million barrels
of oil equivalent

59

Net surface area

km2

16,571

Africa

Net production

Million barrels
of oil equivalent

14

Proven reserves

Million barrels
of oil equivalent

128

Net surface area

km2

25,133

Asia and Oceania

Net production

Million barrels
of oil equivalent

31

Proven reserves

Million barrels
of oil equivalent

174

Net surface area

km2

100,703

As an integrated company, the starting point of the energy that Repsol provides to society can be found in Exploration and Production.

In 2017 our Upstream area participated in exploration and production projects in 31 countries, with operated assets in 25 of them. As of December 31st, the Company held mineral rights to a total surface area of 205,382 km2.

In 2017, this business's adjusted net income amounted to €632 million, up €580 million on the previous year thanks to efficiency improvements, the restart of production in Libya, and an increase in international benchmark prices.

Gas continues to strengthen its presence in our production assets and reserves portfolio, accounting for 63% and 74% respectively, in 2017. This hydrocarbon is a basic element for the future energy mix and is expected to further increase its bearing on the world energy matrix in the coming decades.

Exploration and Production projects
in 31 countries

In 2017, production also started up at other major assets, including Reggane Nord in Algeria, Sagari in Lot 57 in Peru, Juniper in Trinidad and Tobago, the Kinabalu redevelopment project in Malaysia, and Flyndre and Shaw/Cayle in the United Kingdom.

Two of the major milestones of the Upstream area in 2017 were the discoveries made in Trinidad and Tobago and in Alaska (United States).

The Alaska discovery is the largest onshore conventional hydrocarbon discovery in the last 30 years, with estimated resources of around 1.2 billion barrels of recoverable light crude. It was one of the largest discoveries of hydrocarbons worldwide in 2017.

In June, we announced the largest gas discovery made by Repsol in the last five years and the largest gas discovery in Trinidad and Tobago in the last decade. Resources are estimated at approximately 2 trillion cubic feet of gas, equivalent to two years of gas consumption in Spain.

Adjusted net result
Million euros 2016 2017 Variation
Europe, Africa and Brazil 167 355 188
Latin America 234 386 152
Nort America 9 (43) (52)
Asia and Russia (4) 161 165
Exploration and other (354) (227) 127
Adjusted Net Income 52 632 580

Production

In 2017, our average net production reached 695,000 barrels of oil equivalent per day, up 5,000 barrels per day from 2016. This increase was largely due to the restart of production in Libya, the drilling of new wells in Sapinhoá and Lapa in Brazil, and the start-up new projects in Trinidad and Tobago (Juniper) and the United Kingdom (MAR and Flyndre and Shaw/Cayle).

Exploration

With regards to exploration activity, 14 exploratory wells and two appraisal wells were drilled. Six of them were declared positive (five exploratory and one appraisal) and 10 were negative (all exploratory except for one appraisal).

Reserves

On December 31st, 2017, the Company's proved reserves amounted to 2,355 mboe, of which 617 mboe (26%) corresponded to crude oil, condensed oil, and liquefied gases, and the remaining 1,738 mboe (74%) to natural gas. These reserves were estimated in accordance with the criteria established by the Society of Petroleum Engineers' Petroleum Reserves Management System.

The evolution of reserves includes the incorporation of a total of 227 mboe in 2017, mainly as a result of extensions and discoveries in the United States and previous revisions of estimates in this country, as well as in Trinidad and Tobago, Brazil, Vietnam, and Libya.

In 2017 we achieved an organic reserve replacement ratio (ratio of total incorporations of proved reserves, excluding purchases and sales, to production during the period) of 93%.

Main operating figures

2016 2017
Net undeveloped acreage (km2) 277,027 199,599
Net developed acreage (km2) 4,862 5,783
Reserves of crude oil, condensate and LPG (MMb) 584 617
Natural gas reserves (MMboe) 1,798 1,798
Reserve replacement ratio (%)(1) 103 89
Total production of liquids (kbbl/d) 243 255
Total net gas production (Mboe/d) 447 440
Total net hydrocarbon production (Mboe/d) 690 695
Average crude oil price ($/bbl) 39 49.6
Average gas price ($/kscf) 2.4 2.9
Bonds, dry wells, and general and administratio expenses(2) 443 457
  1. Reserve replacement ratio (calculated by dividing total additions of proven reserves in the period by production for the period).
  2. Only costs directly assigned to exploration projects.