Upstream
operational efficiency
income
million euros
“In Upstream, we focus on improving the profitability of our assets and operations. This will make us stronger and allows us to add more value, regardless of oil and gas prices.”
Luis Cabra
Executive Managing Director of Upstream
production
reserves
2017 Milestones
Alaska
Trinidad and Tobago
1.2 billion barrels of crude
March 2017
Biggest onshore conventional
oil discovery in 30 years
on U.S. soil, with estimated resources
of approximately 1.2 billion barrels
of recoverable light crude.
2 trillion cubic
feet of gas
June 2017
The largest gas discovery
made by Repsol in the last five
years and the biggest
in Trinidad and Tobago in a decade
Resources are estimated
at approximately 2 trillion cubic
feet of gas, equivalent to two
years of gas consumption in Spain.
Malaysia
Kinabalu
October 2017
Start of crude production
in the redevelopment project at the
Kinabalu field in Malaysia,
following the installation of a new
platform in June 2017.
Peru
Sagari field
November 2017
Start of gas production
in the Sagari field. The equivalent
of approximately a quarter
of the gas consumed
in Peru is extracted
from this field.
Algeria
Reggane Nord
December 2017
First gas at the Reggane
Nord gas project in Algeria.
Maximum production capacity
— eight million cubic meters
of gas per day — is expected
to be reached during 2018.
Platts
Award for the world’s leading E&P company
December 2017
Alaska
1.2 billion barrels
of crude
March 2017
Biggest onshore
conventional oil discovery
in 30 years on U.S. soil,
with estimated resources
of approximately 1.2 billion
barrels of recoverable
light crude.
Peru
Sagari field
November 2017
Start of gas production
in the Sagari field.
The equivalent of approximately
a quarter of the gas consumed
in Peru is extracted from
this field.
Algeria
Reggane Norte
December 2017
First gas at the Reggane
Nord gas project in Algeria.
Maximum production capacity
— eight million cubic meters
of gas per day — is expected
to be reached during 2018.
Trinidad
and Tobago
2 trillion cubic
feet of gas
June 2017
The largest gas discovery
made by Repsol in the last
five years and the biggest
in Trinidad and Tobago
in a decade Resources are
estimated at approximately
2 trillion cubic feet
of gas, equivalent to two
years of gas
consumption in Spain.
Malaysia
Kinabalu
October 2017
Start of crude production
in the redevelopment project
at the Kinabalu field
in Malaysia, following
the installation of a new platform
in June 2017.
Platts
Award for the world’s
leading E&P company
December 2017
Upstream data
by region
North America
Net production
Million barrels
of oil equivalent
63
Proven reserves
Million barrels
of oil equivalent
504
Net surface area
km2
10,737
Latin America
Net production
Million barrels
of oil equivalent
127
Proven reserves
Million barrels
of oil equivalent
1,490
Net surface area
km2
52,238
Europe
Net production
Million barrels
of oil equivalent
19
Proven reserves
Million barrels
of oil equivalent
59
Net surface area
km2
16,571
Africa
Net production
Million barrels
of oil equivalent
14
Proven reserves
Million barrels
of oil equivalent
128
Net surface area
km2
25,133
Asia and Oceania
Net production
Million barrels
of oil equivalent
31
Proven reserves
Million barrels
of oil equivalent
174
Net surface area
km2
100,703
As an integrated company, the starting point of the energy that Repsol provides to society can be found in Exploration and Production.
In 2017 our Upstream area participated in exploration and production projects in 31 countries, with operated assets in 25 of them. As of December 31st, the Company held mineral rights to a total surface area of 205,382 km2.
In 2017, this business's adjusted net income amounted to €632 million, up €580 million on the previous year thanks to efficiency improvements, the restart of production in Libya, and an increase in international benchmark prices.
Gas continues to strengthen its presence in our production assets and reserves portfolio, accounting for 63% and 74% respectively, in 2017. This hydrocarbon is a basic element for the future energy mix and is expected to further increase its bearing on the world energy matrix in the coming decades.
in 31 countries
In 2017, production also started up at other major assets, including Reggane Nord in Algeria, Sagari in Lot 57 in Peru, Juniper in Trinidad and Tobago, the Kinabalu redevelopment project in Malaysia, and Flyndre and Shaw/Cayle in the United Kingdom.
Two of the major milestones of the Upstream area in 2017 were the discoveries made in Trinidad and Tobago and in Alaska (United States).
The Alaska discovery is the largest onshore conventional hydrocarbon discovery in the last 30 years, with estimated resources of around 1.2 billion barrels of recoverable light crude. It was one of the largest discoveries of hydrocarbons worldwide in 2017.
In June, we announced the largest gas discovery made by Repsol in the last five years and the largest gas discovery in Trinidad and Tobago in the last decade. Resources are estimated at approximately 2 trillion cubic feet of gas, equivalent to two years of gas consumption in Spain.
| Million euros | 2016 | 2017 | Variation |
| Europe, Africa and Brazil | 167 | 355 | 188 |
| Latin America | 234 | 386 | 152 |
| Nort America | 9 | (43) | (52) |
| Asia and Russia | (4) | 161 | 165 |
| Exploration and other | (354) | (227) | 127 |
| Adjusted Net Income | 52 | 632 | 580 |
Production
In 2017, our average net production reached 695,000 barrels of oil equivalent per day, up 5,000 barrels per day from 2016. This increase was largely due to the restart of production in Libya, the drilling of new wells in Sapinhoá and Lapa in Brazil, and the start-up new projects in Trinidad and Tobago (Juniper) and the United Kingdom (MAR and Flyndre and Shaw/Cayle).
Exploration
With regards to exploration activity, 14 exploratory wells and two appraisal wells were drilled. Six of them were declared positive (five exploratory and one appraisal) and 10 were negative (all exploratory except for one appraisal).
Reserves
On December 31st, 2017, the Company's proved reserves amounted to 2,355 mboe, of which 617 mboe (26%) corresponded to crude oil, condensed oil, and liquefied gases, and the remaining 1,738 mboe (74%) to natural gas. These reserves were estimated in accordance with the criteria established by the Society of Petroleum Engineers' Petroleum Reserves Management System.
The evolution of reserves includes the incorporation of a total of 227 mboe in 2017, mainly as a result of extensions and discoveries in the United States and previous revisions of estimates in this country, as well as in Trinidad and Tobago, Brazil, Vietnam, and Libya.
In 2017 we achieved an organic reserve replacement ratio (ratio of total incorporations of proved reserves, excluding purchases and sales, to production during the period) of 93%.
| 2016 | 2017 | |
| Net undeveloped acreage (km2) | 277,027 | 199,599 |
| Net developed acreage (km2) | 4,862 | 5,783 |
| Reserves of crude oil, condensate and LPG (MMb) | 584 | 617 |
| Natural gas reserves (MMboe) | 1,798 | 1,798 |
| Reserve replacement ratio (%)(1) | 103 | 89 |
| Total production of liquids (kbbl/d) | 243 | 255 |
| Total net gas production (Mboe/d) | 447 | 440 |
| Total net hydrocarbon production (Mboe/d) | 690 | 695 |
| Average crude oil price ($/bbl) | 39 | 49.6 |
| Average gas price ($/kscf) | 2.4 | 2.9 |
| Bonds, dry wells, and general and administratio expenses(2) | 443 | 457 |
- Reserve replacement ratio (calculated by dividing total additions of proven reserves in the period by production for the period).
- Only costs directly assigned to exploration projects.