2023-04-28 16:24:59 ET
Repsol ( OTCQX:REPYF ) ( OTCQX:REPYY ) said Friday it reached an agreement with China's Sinopec to buy the 49% stake in a North Sea oil and gas joint venture it does not already own, settling a long-running arbitration between them.
Repsol ( OTCQX:REPYF ) ( OTCQX:REPYY ) said the operation's net cash outlay would total $1.1B, with the deal expected to be completed before year-end 2023, but the transaction will have "no significant impact on earnings," since the company already made a provision in its accounts for the arbitration in 2020.
Sinopec had sought $5.5B in compensation for its initial investment and lost investment opportunities from the 2012 venture deal with Canadian firm Talisman, which Repsol ( OTCQX:REPYF ) ( OTCQX:REPYY ) bought in 2014.
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Repsol settles Sinopec dispute with $1.1B buyout of North Sea JV