Spanish company Repsol plans to end its pursuit of oil growth amidst a global move to transition to clean energy.
This is according to a Bloomberg report published on Tuesday. According to the article, the company is the first of its peers of large multinationals to make such an announcement.
Repsol is currently one of the several oil companies exploring offshore Guyana, with a concession in the Kanuku block for which it has a 70 percent stake and to which is it partnered with British company Tullow, which has a 30 percent stake.
According to the article, the decision illustrates how the oil industry’s strategic decisions “are starting to be influenced by emissions curbs, electric cars and renewable energy, which have stoked questions about the strength of long-term demand.”
The article said that according to a source from the company, Repsol will unveil an updated business plan in June. The plan will limit oil and gas output to current levels and ensures it keeps no more than about eight years of reserves on its books.
It is reported that Repsol indicated it wants to become known as an energy company, rather than an oil producer. Speaking at the annual Repsol shareholders meeting in Madrid on May 11, 2018, Chairman Antonio Brufau said, “Don’t have any doubt that we are fully committed to the fight against climate change. Wind and solar are already very competitive energy [sources] and in the future electric cars will also become a part of Repsol’s business.”