• The stake in the Tangguh project may fetch up to $300 Million
  • Spain's largest oil company is working to reduce debt

Repsol SA is considering selling its stake in Tangguh LNG, one of Indonesia’s largest liquefied natural gas projects, as Spain’s biggest oil company seeks to reduce debt, according to people familiar with the matter.

Repsol’s 3.1 percent stake in the gas fields, operated by BP Plc, may fetch as much as $300 million in a sale, the people said, asking not to be identified as the deliberations are private. Repsol is working with Goldman Sachs Group Inc. to help identify buyers for the stake, the people said. There is no guarantee that a deal will be agreed, and Repsol may also decide to retain the stake, according to the people.

Repsol, like other oil producers, is suffering from a global glut that’s pushed the price of oil to near its lowest level in more than six years. The company has sold assets and cut investments this year to weather the slowdown and to help reduce debts after acquiring Canada’s Talisman Energy Inc. for $13 billion in May. Repsol owns the Tangguh stake through Talisman.

Ownership of Tangguh is split among BP and seven partners. The British oil company is the largest holder with a 37 percent stake. Tangguh started production in 2009, according to BP’s website.

Representatives for Repsol and Goldman Sachs declined to comment.

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