Repsol has agreed to sell its offshore wind power business in the United Kingdom to SDIC Power of China for 238 million Euros (US$262 million). The deal generates a post-tax capital gain of 109 million Euros (US$120 million). The company expects to complete the sale of the UK assets during the first half of this year.
The sale includes the Inch Cape project (100%) and Repsol’s share in the Beatrice project (25%), both of which are located on the east coast of Scotland.
The Beatrice project is located in Outer Moray Firth, Scotland and is one of five offshore wind projects in the UK awarded an Investment Contract by the UK government (fixed inflation indexed settlement price for a 15 year period). The project has been substantially developed by SSE plc and Repsol. The offshore wind farm is planned to be fully operational in 2019.
Inch Cape Offshore Wind Farm is located in the North Sea around 15 km off the Angus coastline. The project will cover an area of approximately 150 km2 and will consist of up to 110 turbines.
It is expected that Inch Cape Offshore Wind Farm will have a capacity of around 784 MW and yield over 2,000 GWh per year. This is equivalent to powering around 500,000 homes, or more than a fifth of all the homes in Scotland (2.37 million).
Following the agreement, Repsol has finalized divestments worth more than 2.5 billion Euros in the last five months.
The company’s active management of its portfolio of assets is one of the key strategic lines of action outlined in the 2016-2020 Strategic Plan, whose focus is on value-creation, The Strategic Plan will allow the company to obtain 6.2 billion Euros from the divestment of non-strategic assets between 2016 and 2020.