Repsol to buy Talisman Energy for $8.3bn

Spanish energy firm Repsol has agreed to acquire Canadian oil and gas company Talisman Energy for $8.3bn, in addition to assumed debt of $4.7bn.

The deal will increase Repsol’s presence in OECD countries and expand its upstream business.

It will increase Repsol’s production by 76% to 680,000 barrels of oil equivalent a day, and reserves by 55% to 2,353 billion barrels of oil equivalent.

The deal will add a significant exploration portfolio and productive assets in North America, South-East Asia, Colombia and Norway.

Subject to the approval of the Canadian courts and Talisman shareholders, the transaction is expected to be completed in mid-2015.

Repsol said the acquisition will reinforce its upstream unit by improving the quality of its assets and increasing growth potential.

Repsol chairman Antonio Brufau said: "Talisman is an excellent company which will add its experience and proven track record in production assets that will add to that of Repsol in deep water exploration. This will significantly boost joint development."

Talisman Energy chairman Chuck Williamson said: "The deal underscores Repsol’s belief in the strong set of assets Talisman has worked hard to develop.

"Repsol is a world-class operator with a solid track record and the resources to continue the development of these assets within their international portfolio."