Headquartered in Madrid, Spain, Compañia Española de Petróleos (CEPSA) is an integrated energy company with more than 80 years’ experience. Since 2011, it has been 100% owned by IPIC, which first acquired a stake in 1988, further increasing it in 2009 from 9.6% to 47.1%.
CEPSA has operated in the energy sector since 1929, when it was set up as the first private oil company in Spain. The company is engaged in hydrocarbon exploration and production, refining and marketing; the transport and sale of crude oil derivatives; petrochemicals; and gas and electricity.
CEPSA is Spain's fourth largest industrial group in terms of turnover, and has more than 11,000 employees. Thanks to its flexibility and ability to adapt, CEPSA is a benchmark company in its sector in Spain. Through progressive internationalisation of its activities, it also has business interests in Algeria, Brazil, Canada, China, Colombia, Panama, Peru and Portugal, and sells its products all over the world.
Under IPIC’s ownership, the company has a new strategic plan to achieve strong global growth, focusing primarily on its Exploration and Production and Petrochemical business units, while taking advantage of other opportunities that arise in the refining and marketing areas. CEPSA’s 2012-2016 strategic plan aims to transform the business into one of Europe's leading energy corporations, with a highly integrated organisation and a strong international presence. The core elements of the plan are strong growth in Exploration and Production, international expansion in Petrochemicals, efficiency maximisation in production centres, cost control in all business units, increased market share and better return on marketing.
The plan will deliver a better balance and greater diversification in CEPSA’s business units through organic growth and acquisitions, generating funds from across the business. This will help maintain a healthy balance sheet, keep strict control over risks, and accommodate variations in the economic and industrial climate.
To help accomplish these objectives, the company is moving towards a simple and streamlined structure, with business units that will operate with a high degree of independence. The new structure is creating well-defined central functions, responsibilities and roles in finance, purchasing, human resources, communications, institutional relations, legal and technology.
CEPSA produces oil products at its three refineries in Spain (Tenerife, La Rábida in Huelva and Gibraltar - San Roque). The three refineries have achieved the following certiﬁcations: OHSAS 18001, ISO 14001 and 9001, and PECAL 2129. Their products include diesel, gasoline, fuel-oil, kerosene and liquefied petroleum gas (LPG), among others.
The Exploration and Production unit comprises the group's activities in exploration, development and production of crude oil and natural gas. CEPSA's production activities are based mainly in Algeria and Colombia, with on-shore fields in both countries. It is also involved in an off-shore field in the Mediterranean along the Tarragona coast.
CEPSA’s Commercial activity focuses on selling fuels through traditional channels and an extensive national and international network of agents and distributors. This includes marketing of liquefied petroleum gases, asphalts and lubricants. In 2011, CEPSA's total sales totalled 26.34 million tonnes. Consumption of oil products in Spain and Portugal in 2011 reached 74.2 million tonnes.
The company’s Petrochemicals activity is highly integrated with the refining business, resulting in products with a significant added value. These products in turn serve as raw materials for other industries and have numerous uses, including plastics, detergents, synthetic fibres, and PET bottles.
CEPSA’s petrochemicals subsidiaries were merged in 2008 into a single company, CEPSA Química, which has three manufacturing plants in Spain, two in Canada and one in Brazil that can produce as much as 3 million tonnes of products per year combined.
Early in 2011, CEPSA Química acquired Artenius San Roque, thus expanding its petrochemical production and increasing its presence in the value chain of the petrochemical industry. With this acquisition CEPSA became one of just two world producers of PTA, PIPA and PET. In this segment, CEPSA Química manufactures and sells raw materials to make detergents and for the polyester industry, as well as cumene, phenol and acetone for manufacturing resins, high technology plastics, synthetic fibres, pharmaceutical products and a long list of end uses.
The manufacture of basic petrochemicals products is carried out at CEPSA´s Gibraltar - San Roque and La Rábida refineries, which can produce over 1 million tonnes of these derivatives per year. Once the crude is distilled, the refineries’ transformation units obtain raw materials (benzene, toluene and xylene) for other processes, as well as intermediate and final products such as solvents, propylene and sulphurs. CEPSA Química distributes and sells these products worldwide.
CEPSA Química works with the group's Research Centre to look for ways to improve existing processes and seek new processes and products in collaboration with official bodies such as the Higher Council for Scientific Research (CSIC), external centres and universities.
In the Gas and Power sector, CEPSA supplies gas to wholesale and retail markets and electricity to industrial clients and third sector consumers. CEPSA's natural gas business revolves around consolidating a secure supply for the group's needs and wholesale and retail gas sales. CEPSA distributes its gas through CEPSA Gas Comercializadora, in which CEPSA has a 35% stake.
CEPSA is a shareholder in MEDGAZ, which was formed in April 2001 by CEPSA and Sonatrach. Other shareholders include numerous international energy companies. It is the pipeline linking Algeria (Beni-Saf) directly to Europe via Spain (Almeria). It is the first gas pipeline in the Mediterranean to be built in such deep waters, with a maximum depth of 2,160 metres and a length of 210 km. It has a total capacity of 8 bcm/year (billion cubic metres per year), 20% of which is transported by CEPSA. From the beginning of its operations in April 2011, its average capacity utilisation has been 43%. The commencement of operations at MEDGAZ has improved security of the gas supply to Europe.