Thursday, Jul 07, 2011
MADRID (Dow Jones)--International Petroleum Investment Co. confirmed it seeks to boost the exploration and production operations of Spanish oil firm Compania Espanola de Petroleos SA (CEP.MC), which Abu Dhabi's sovereign fund will formally acquire later this month.
In the takeover prospectus published late Wednesday, IPIC said it wants to "increase the presence of Cepsa in the upstream business within the next twelve months."
In February, IPIC launched an offer to buy out Cepsa, Spain's second-largest oil company by market value after Repsol YPF SA (REP). As a part of the operation, the sovereign fund announced an agreement with French oil major Total SA (TOT) to buy its 48.8% stake in Cepsa for EUR3.7 billion. IPIC currently owns 47% of Cepsa.
The Abu Dhabi sovereign fund also said in the prospectus that it will strengthen Cepsa's international presence. The Spanish oil company has traditionally focused on downstream activities, such as refining and marketing, with a strong presence in its domestic Spanish market.
Two people close to the situation said in May that IPIC wanted to boost Cepsa's exploration and production activities by increasing investment. It hasn't ruled out acquisitions to speed up its potential expansion.
Spanish regulators approved on Wednesday IPIC's takeover bid, which will be completed by the end of July, according to the prospectus.
-By Juan Montes, EFE Dow Jones; +34 91 395 81 36, juan.montes@dowjones.com
(END) Dow Jones Newswires
07-07-11 1231GMT
