Repsol Plant to Oil Exploration and Development in Alaska

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A subsidiary of Spain energy company Repsol-YPF plans to invest at least $768 million in oil exploration and development on Alaska’s North Slope.

Repsol E&P USA Inc. says it’s working with 70 & 148 LLC and GMT Exploration LLC to develop leases over a 772-square mile area. Repsol says it will hold a 70 percent interest and plans to begin exploratory work next winter.

Repsol Chairman Antonio Brufau says the deal fits with efforts to have lower-risk, onshore opportunities in stable environments in Repsol’s portfolio. Repsol’s worldwide operations include those in Libya, currently embroiled in political chaos.

Alaska state Sen. Bill Wielechowski says the Repsol deal is damaging to the argument that the state’s tax structure hinders development. The governor is proposing cutting oil taxes to spur greater investment.

Spanish energy group Repsol YPF SA /quotes/comstock/11i!repyy (REPYY 32.60, -1.00, -2.98%) /quotes/comstock/06x!e:rep (ES:REP 23.75, -0.47, -1.94%) on Monday said it will invest $768 million in an Alaskan oil exploration deal it has reached with 70 & 148 LLC and GMT Exploration LLC. Repsol will have a 70% stake in the joint venture with those two companies, working on oil-rich onshore blocks on the North Slope of Alaska. The total investment represents the amount Repsol will pay to those partners and the cost of exploration over the course of several years.