Spanish oil company Repsol has unveiled its 2021 – 2025 strategic plan which will advance its net-zero emissions objective.

Repsol said on Thursday that the new strategy would be
highly flexible concerning the macroeconomic environment and that it would be set
in motion at a time of historic difficulty to which the company already
responded with its Resilience Plan 2020.

The Resilience Plan produced positive cash flow in every
business in the first nine months of the year and estimated savings for the
whole year of €2.4 billion ($2.85 billion).

In this highly uncertain environment, the company has
established two differentiated periods in its strategic plan. In the first two
years, it will focus on ensuring financial strength. The plan is self-financing
at an average $50 per barrel of Brent and $2.5 per mbtu at the Henry Hub.

During the first period of the plan, efficiency, investment
cuts, and optimization of capital will be prioritized together with projects to
lead the energy transition. From 2022, with recovery from the impact of
Covid-19, the focus will shift to the acceleration of growth.

Repsol added that it would be investing a total of €18.3
billion ($21.8 billion) will be invested during the new five-year plan. Low-carbon
spending will reach €5.5 billion ($6.5 billion) between 2021 and 2025 which
will be accompanied by a continued international expansion.

Source: Repsol
Source: Repsol

In a scenario of continued higher prices, Repsol plans to accelerate
the growth of low-carbon projects in its portfolio. The final target is to
achieve net-zero emissions by 2050.

More precisely, the Strategic Plan 2021-2025 aims at a
reduction of the carbon intensity by 12 per cent in 2025, 25 per cent in 2030,
and 50 per cent in 2040.

Josu Jon Imaz, Repsol CEO, said: “With this new strategic plan, which leverages our strengths, we are taking a significant step towards becoming a net-zero emissions company, outlining a profitable and realistic roadmap that will allow us to grow, maximise value for our shareholders, and assure the future.

Our strategy is based on a multi-energy offering that combines all the technologies for decarbonisation of energy. We will be more efficient and increase our renewable energy objectives as well as our manufacture of products with a low, neutral, or even a negative carbon footprint.

We will promote circular economy initiatives, develop new energy solutions for our customers, and boost cutting-edge projects to reduce the industry’s carbon footprint”.

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