Sinopec, Temasek Interested in Repsol’s Stake in Natural Gas Fenosa

Companies already linked to Repsol could have a preferential treatment in their attempt to approach the Spanish oil company and buy its stake in Gas Natural Fenosa.

According to Reuters, Singapore’s sovereign wealth fund Temasek and China's refiner Sinopec have recently approached Repsol over its 4.4-4.7 billion euro stake in Spain’s Gas Natural. 

Repsol is part of Temasek’s portfolio of investments. It is also Sinopec’s partner in South America. Repsol Sinopec Brasil was created in 2010 after the Chinese company’s $7.1 billion investment in Repsol Brasil. 

The Spanish firm is trying to diversify its investments. It eyes US upstream opportunities, while considering the sale of its stake in the Spanish utility. Last month, it moved closer to the disinvestment, sounding out banking advisers about the operation. 

Despite all the attention, the company is not in a hurry. It already surpassed its 2012-2016 disinvestment goals at the end of February following the agreement to sell LNG assets to Shell for $6.652 billion. According to the company, its position in Natural Gas Fenosa lost strategic importance after the agreement with Shell. The agreed sale is due to close this year. 

The company voiced its interest to disinvest in the gas markets in July. It was then followed by La Caixa: the Spanish bank is also considering the sale of its stake in Gas Natural Fenosa. 

According to Reuters, Repsol denied on Monday rumours claiming that the Spanish company was planning to merge with Gas Natural Fenosa as an alternative to the sale of its 30% stake in the company. In this sense, the sale looks like the only strategic option for the Spanish oil major. But times are not defined and any agreement could take months.