Repsol, the oil conglomerate from Spain, has announced the sale of another 5% interest to the Singaporean government fund, Temasek. This is seen as a step towards financial stability as it also sold its gas assets to Shell just last week.
Temasek, a known booster in the energy industry, had purchased the entire treasury portfolio of Repsol for Eur1.04 billion or US$1.35 billion. The sale increased the Singaporean fund's interest to 6.3%. The sale was made at a discount, with Repsol suffering a Eur148 million loss. Temasek is currently the ninth biggest sovereign investor in the world.
Despite the loss, the deal is expected to help the credit rating of Repsol. The Spanish oil firm has been under scrutiny since Argentina expropriated its stake last year through its investment arm YPF. With the pull out, there was much concern as to the overall health and growth of the oil and gas firm.
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