Spain's Repsol buys stake in Campo Shenzi oil field in Gulf of Mexico from BP

(2006-07-12 12:53:15 GMT+1)

(AP) -- Spanish-Argentine energy giant Repsol said Wednesday it has paid British Petroleum €1.7 billion ($2.17 billion) for a 28 percent stake in Mexico's Campo Shenzi oil field in U.S. waters of the Gulf Of Mexico.

In a regulatory filing, Repsol said Shenzi has proven reserves _ discovered in its initial development phase _ of between 350 million and 400 million barrels. The company said its investment there will allow it to boost its production in U.S. waters of the Gulf of Mexico to 35,000 barrels of petroleum a day.

Repsol, which has one the world's lowest reserve replacement ratio among major oil companies, has ambitious plans to find new oil sources.

It plans to spend €11.4 billion ($14.52 billion) in exploration and production through the year 2009.