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Repsol in talks with Rosneft over Sakhalin

Spanish oil company Repsol is in talks with Russian oil major Rosneft about taking a stake in the Sakhalin-III oil and gas fields, a company spokesman said on Tuesday.

The spokesman could provide no further details, but the Financial Times quoted unnamed sources as saying that Repsol aimed to take a 25% stake in the oilfield. The project is located on Sakhalin Island off Russia, is majority controlled by Rosneft, and China’s Sinopec owns around a quarter of it. The talks come as Repsol diversifies upstream assets due to energy nationalization in Bolivia and extraction problems in Argentina.

Repsol is already involved in exploration projects in Libya, Algeria, the Gulf of Mexico and Brazil. In Russia, Repsol bought a 10% stake in West Siberian Resources for $90 million in 2006 and in the same year signed a preliminary deal with Gazprom. (Reuters)