MADRID, June 14 Spanish oil company Repsol
is looking for acquisitions in OECD countries that
offer an internal rate of return of between 7 percent and 8
percent, Chief Financial Officer Miguel Martinez told El
Repsol has already said it could spend around $10 billion on
acquisitions to boost its exploration and production business
and Martinez said Norway, Canada and the United States are its
first countries of choice.
"The kind of country that lets you sleep one night a week,"
Martinez said in an interview with El Economista published on
Repsol would be looking for an internal rate of return, a
measure of profitability, of about 7 percent from projects in
Canada and 8 percent in the United States and Norway, he said,
and reiterated the search for purchases that offer a growth
platform and fresh know-how.
The firm has a war chest of about $5 billion after settling
with Argentina over the 2012 seizure of its YPF arm
and has said it could also sell its 30 percent stake of Gas
Natural Fenosa, worth about $9 billion, to fund a buy.
Repsol has already paid shareholders a 1-euro-per-share
special dividend and Martinez said that given the company's
solid financial standing, it could "reformulate" its current
policy of offering dividends in shares.
(Reporting by Tracy Rucinski; Editing by Elaine Hardcastle)