Spanish oil giant Repsol has announced that it intends to boost production of oil 750,000 barrels per day by 2020 and raise dividends to €1 (£0.88) over the next two years.
Repsol, which is Europe's fifth largest refiner of oil, said that between 2018 and 2020 it would invest €15bn in capital expenditure, 53 per cent in its upstream branch and 45 per cent in downstream and low-emission assets.
The increase in oil production will be an eight per cent increase on the company current oil output and the increase of dividends to €1 is an increase from the current €0.90.
The company said: “The updated strategic plan, based on Repsol's significant success in managing and obtaining value, sets even more ambitious goals.”
“It will allow the company to take advantage of growth opportunities over the next two and a half years amid the expected volatility of oil prices in the medium term and improved conditions for Repsol's refining and chemical business.”
Although being primarily an oil producer, the company is trying to diversify its activity and branch out into low emission and renewable energy sources and will allocate €2.5bn to these projects.
Repsol's plan bases itself on the oil price not dropping below $50 per barrel, which would be a significant drop from today's Brent crude price which was $75.29 at 12.30pm.
In the last few years, Repsol has focused on reducing its debt after paying a premium to buy the Canadian oil producer Talisman in 2015 at the same time as the oil price plunged considerably.
As of 12.30pm, the company's share price had increased by more than three per cent.