At Upstream, we work hard day after day to ensure that efficiency, safety, and environmental respect are at the heart of our projects.
We have a high quality, balanced, and diversified portfolio which means that we operate in the world's most energy rich areas. The main strategic areas where Repsol operates are North America, Latin America, and Southeast Asia which are classified as priority areas due to their energy potential. Additionally, we focus on our onshore, shallow water, and unconventional assets.
We are a renowned worldwide for our exploration capacity and have made over 40 discoveries, eight of which are some of the world's most important.
Diversification in Upstream and efficient portfolio management have enabled us to achieve an average production of 700,000 barrels per day, with net proved reserves of 2.382 billion barrels of oil eqivalent (BOE).
Our hydrocarbon production is 65% gas, proof of Repsol's strong commitment to creating a more efficient energy model with lower emissions.
Technological innovation is a key element for our Upstream business. It enables us to be more efficient upon undertaking our projects, and it also helps us improve safety and ensure respect for the environment.
Upstream's adjusted net income in 2016 stood at €52 million, compared to the -€925 million in the same period in 2015. The adverse impact of lower income caused by low oil and gas prices were offset by the positive impact resulting from larger volumes sold as well as the significant reductions in exploration expenses (due to fewer failed wells) and in operating costs (due to improved efficiency of operations). It is also worth noting that amortization charges were lower due mainly to the impairments recognized in the previous year.
Upon comparing the 2015 and 2016 results, it must be taken into account that, as a result of the acquisition of ROGCI, its businesses have been consolidated since May 8th, 2015.
ADJUSTED NET INCOME
|Europe, Africa, and Brazil||(124)||167||291|
|Asia and Russia||19||(4)||(23)|
|Exploration and other||(669)||(354)||315|
|Adjusted net income||(925)||52||977|