Repsol YPF, Spain's largest oil company, said it is looking to spend at least $768 million to explore for oil resources in Alaska as the company looks for new markets to develop a presence in. The Spanish company will acquire stakes in Alaska's North Slope and work with GMT Exploration and a unit of Armstrong Oil & Gas.
Repsol (REP) has been making a push into new locations for oil exploration as production in Argentina, one of the company's top markets, wanes and political differences impact the company's operations there. Repsol was also planning to boost exploration in Libya this year, but those plans have changed as political violence has increased in that country.
Repsol is already exploring several blocks in the U.S. Gulf of Mexico and produces oil and gas in the Shenzi field there, according to the Wall Street Journal. The Alaska blocks are located close to large producing fields and cover an area of 2,000 square kilometers, the Journal reported.
Repsol said its minimum financial commitment for the Alaska work will be $758 million and that it expects exploratory work to commence next winter.