Repsol will dedicate 35% of its investments by 2025 to low-carbon initiatives as it moves towards net zero emissions by 2050.

The Spanish energy company’s upstream business has the stated objective of reducing its CO2 emissions intensity by 75% between 2021 and 2025. Carbon capture and storage will play a key role in developing new projects, with projects such as Sakakemang in Indonesia, which will be among the largest of its kind in the world.

Net income for the nine months ended 30 September totalled €1.939 billion ($2.25 billion), which is higher than the same period in 2019, before the pandemic.

“Our results have returned to pre-pandemic levels, driven by our efficient management and the implementation of our strategic plan. At the same time, we are making firm progress in our transformation to become carbon neutral by 2050,” said chief executive Josu Jon Imaz.

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Repsol achieved positive cash flow in all segments and has reduced net debt this year by 9% to €6.136 billion.

Its exploration and production business achieved adjusted net income of €1.063 billion for the first nine months, reversing a loss in the comparable period of 2020, which the company said reflects efficiency improvements, and operational and cost optimisation.

Average production was 576,000 barrels of oil equivalent per day. The company enjoyed exploration success in Indonesia, Mexico and Bolivia, where the Boicobo Sur-X-1ST well discovered estimated resources of 1 trillion cubic feet of gas.

As it streamlines its upstream portfolio, Repsol sold its E&P assets in Malaysia and Block 46 CN in Vietnam this year to independent Hibiscus Petroleum and exited the Arog joint venture in Russia.

The company said on Thursday that along with stopping oil production in Spain and ceasing exploration in several countries, these moves advance its strategic objective of focusing on geographic areas where it has the greatest competitive advantages, concentrating its presence in 14 countries, and prioritising value over volume.

Hydrogen plans

Repsol recently announced an increase of €1 billion in investments by 2025 to boost renewable electricity generation and renewable hydrogen production, as well as other low-carbon initiatives.

It has announced the installation of electrolyser plants at its industrial complexes in Spain and this month it partnered EDP to promote renewable hydrogen production in the Iberian Peninsula.

In Chile, Repsol and Ibereolica Renovables completed construction of their first joint wind farm, the 188.1-megawatt Cabo Leones III.

Repsol has increased its target for renewable electricity generation by 60% to 20 gigawatts by 2030.