Commodities
Repsol Spent $2.74 Billion in H1 Over Energy Supply Stability, Reports Quarterly Rise in Output in Q2
Spanish energy giant Repsol on Thursday said it allocated 2.4 billion euros ($2.74) in H1 to increase inventories at its refineries and maximize the availability of feedstock amid the energy supply disruptions caused by the US-Iran and Russian-Ukraine wars."In the first half of 2026, Repsol's activity has been affected by the uncertainty stemming largely from the conflict in Iran and the continuing war in Ukraine and the attacks on Russian refineries, which has placed international energy markets under pressure, causing product shortages and increasing volatility of, mainly, oil, gas, diesel, and kerosene prices," the company said in its earnings statement.The company, which has no assets in the Middle East, further allocated an additional 50 million euros over two months to ease the impact of fuel price volatility for its customers through discounts and offers.In Q2, the company reported total production of 558,000 barrels of oil equivalent per day, 4% higher than the previous quarter, and its highest production volume in the past two years supported by advancement of key projects, " which are bringing new barrels onstream in the short term and underpinning production over the medium and long term."The US accounted for 37% of the company's total volumes, with output of over 200,000 boe/d, while output remained steady year-on-year in Venezuela at 71,000 boe/d.The Group projects global net production of 560,000-570,000 boe/d in 2026, with output exceeding 580,000 Boe/d in July.Repsol expects output to increase from 20,000 gross boe/d to 80,000 barrels of crude oil per day by Q3 at the Pikka project in Alaska, which began its first phase of oil production in May and is expected to account for 19% of current production in the state.The company further expanded its Alaska portfolio with a successful Quokka-1 exploration well and by securing 42 new exploration licenses.In Brazil's Campos Basin, Repsol is advancing the Raia gas project, which is projected to start operations in 2028 with net production expected at 40,000-50,000 boe/d for the company.In Libya, Repsol secured two new exploration blocks in the country's first licensing round in 20 years.The company said it received its first crude oil cargo from Venezuela as payment for gas produced at Cardon IV in May and expects four more shipments this year to support higher production and monetize existing output.In H1, the company sold 5,094 gigawatt-hours of power, 31% up year-on-year, while adding 116,000 new electricity and gas customers between March and June, to reach 3.3 million, 18% more than in June last year.The company exceeded 6 GW in total renewable installed capacity in H1, including 2GW of renewable capacity in operation in the US.