VI SIMPOSIO EMPRESARIAL INTERNACIONAL FUNSEAM: RIESGOS Y OPORTUNIDADES DE LA TRANSICIÓN ENERGÉTICA MESA 4: GLOBALIZACIÓN E INTERNACIONALIZACIÓN DEL SECTOR ENERGÉTICO El valor de la internacionalización en el oil&gas: D. Alejandro Oliva, Director de Estrategia y Planificación de Repsol 5 de febrero de 2018 Barcelona

1. Alejandro Oliva
Director de Estrategia y Planificación de Repsol
MESA 4: Globalización
e internacionalización del sector energético
El valor de la internacionalización
en el oil&gas

2. VI Simposio Empresarial Internacional FUNSEAM 2018
Oil is largely traded through crude oil and products
O&G is globalized and compete internationally
Fuente: BP Statistical Review of World Energy 2017
…with international indexes and transparent commodity prices

3. VI Simposio Empresarial Internacional FUNSEAM 2018
LNG is also the way to connect supply and demand
very far from each other.
O&G is globalized and compete internationally
… gas commoditization? (from a regional market to a global market)

4. VI Simposio Empresarial Internacional FUNSEAM 2018
Fuente: BP Stadistical Review. Análisis Inteligencia Competitiva
A sector well accustomed to high price volatility, due
to its critical role in global economic development

5. VI Simposio Empresarial Internacional FUNSEAM 2018
1. Percentage of the State take in the cashflows without discounting the E&P projects. State flows include both the taxes (i.e. royalties to be paid by the IOCs) and the subsidies led by the price and quota control schemes (i.e. local price
differential vs. international references). Source: WMK
Consistent growth of resources nationalism, with
most governments increasing their state take

6. VI Simposio Empresarial Internacional FUNSEAM 2018
The vast majority of resources are in hands of countries
with geopolitical uncertainties
Source: EIA

7. VI Simposio Empresarial Internacional FUNSEAM 2018
NOCs putting pressure on IOCs competitiveness, and
are eager to internationalize
Source: WoodMackenzie
NOCs acquiring further capabilities and less dependant on international companies

8. VI Simposio Empresarial Internacional FUNSEAM 2018
Even most IOCs compete internationally with historical
advantages: their domestic legacies
La especial sensibilidad de sus países les hace estar más protegidos

9. VI Simposio Empresarial Internacional FUNSEAM 2018
In a very risky industry, there are mainly two possible
strategic bets: geographical risk or technical risk
Source: Wood MacKenzie and IHS
These 2 different positionings have even intensified
with the the irruption of unconventionals

10. VI Simposio Empresarial Internacional FUNSEAM 2018
Major focus areas for majors’ and Repsol production as of 2018
Source: 4.19 GEM WoodMacKenzie’s tool. Showing only locations with over 500 kboe/d accumulated. *Gulf 6 stands for Saudi Arabia, Kuwait, Bahrain, Qatar, UAE and Oman. Repsol internal Data.
The successful way to internationalise is a balance
between competitive advantages and diversification
Nigeria
Angola
North Sea
Russia
Kazakhstan
and the
Caspian
Gulf 6
Canada
DW GoM
Permian
Australia
US (Mostly Marcellus)
Trinidad
Bolivia
Top producer
Brazil
4rd producer
2nd producer
Canada
Indonesia
Libya
5th producer
Malaysia
Peru
3rd producer
Venezuela
3rd producer
UK
Majors’ 2018 estimated production: 17,3 Mboe/d
Repsol’s 2018 estimated production: 734 kboe/d

11. VI Simposio Empresarial Internacional FUNSEAM 2018
Source: IHS EDIN Exploration Tool
Repsol as a successful global explorer
201320132009 2017 2004 2002 2012 20012007 2005 2008 2009 2004 201420122008 2011

12. 12
VI Simposio Empresarial Internacional FUNSEAM 2018
Repsol’s portfolio has a low capex intense combination
of regions and technical themes
Source WM

13. VI Simposio Empresarial Internacional FUNSEAM 2018
Repsol has developed local relevance in certain countries
of medium-low scale, where we deploy our capabilities
In these countries, Repsol has an important role
and is a preferred partner for top companies
Repsol is a very skillful sailor and a well recognized player
to navigate and manage geographical risk

14. Alejandro Oliva
Director de Estrategia y Planificación de Repsol
MESA 4: Globalización
e internacionalización del sector energético
El valor de la internacionalización
en el oil&gas
GRACIAS!

15. ANNEX. Repsol post Talisman
15