SPANISH energy giant Repsol has boosted its presence in the North Sea oil and gas sector after striking a deal to acquire Talisman Energy for £8.3 billion.
Madrid-based Repsol said the all-share deal, which values Talisman at US $8 per share, will enhance its standing in "politically stable OECD countries".
Describing its upstream operations as the "growth engine" of its business, Repsol said the acquisition of Canada's Talisman gives it access to its first assets in the UK sector of the North Sea, as well as interests in North America, South East Asia, Columbia and Norway.
Until now its UK interests have been focused on offshore wind farms in Scotland through its Repsol Nuevas EnergÃas company.
Repsol, which had been looking to acquire after offloading Argentine energy firm YPF for £4 billion, already has assets in the Norwegian sector of the North Sea, having stepped up its exploration activity in the area since 2009. The Talisman deal boosts that presence further.
Repsol describes the Norwegian sector as being of strategic importance to the company in light of the level of hydrocarbons expected to be recovered.
Talisman, which sold a 49 per cent stake in its UK North Sea business to China's Sinopec for around £1 billion in 2012, had been looking to reduce its own exposure to the North Sea.
Repsol said the deal will boost its output by 76 per cent to 680,000 barrels of oil equivalent per day and reserves by 55 per cent to more than 2.3 billion barrels.
Chief executive Josu Jon Imaz said: "The agreement with Talisman is the result of an exhaustive analysis of more than 100 companies and assets worldwide.
"In every area, Talisman has always been the best option, because of the excellent quality of its complementary global assets, including its talent."
The transaction, subject to approval by the Canadian courts and Talisman shareholders, is expected to complete in the middle of next year.
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