Temasek and Sinopec bid for Repsol's Gas stake in Gas Natural Temasek and Sinopec have both approached Repsol over buying its €4.7bn stake in Gas Natural as the Spanish oil company seeks to raise cash to increase its investment in oil exploration. Repsol, which is working with Deutsche Bank and Citigroup to find a buyer for the domestic gas distributor, has received separate expressions of interest from Temasek, Singapore's sovereign wealth fund, and the Chinese state-controlled Sinopec after the summer, people close to the process said. Repsol's management, which is aiming to sell 25 per cent of its 30 cent stake, views both Temasek and Sinopec's interest favourably due to their existing ties to the Spanish oil group. Temasek holds 6.3 per cent of Repsol's shares, having raised its stake earlier this year, while Sinopec has been its partner in its Brazilian oilfields since 2010. Both potential investors are also viewed favourably by the Spanish government as stable, long-term investors in Gas Natural, while Caixabank, the utility's biggest shareholder with a 34 per cent stake, has also approved. However, people close to the deal said that no final decision had been made over a sale; that Repsol had also received interest from other parties; and cautioned that since the company was in no hurry to sell, it would come down to an attractive price being offered. Repsol declined to comment. Repsol has been exploring the possibility of selling its Gas Natural holding since it sold its liquefied natural gas unit to Royal Dutch Shell in February.That deal removed the synergies it had previously used to justify the holding in Gas Natural. The sale of the bulk of the holding would release further funds to invest in exploration assets, with Repsol's management currently looking to buy assets in politically stable countries. Repsol has earmarked €19.1bn of investment between 2012 and 2016 as part of its strategic plan, with 80 per cent of these funds allocated to exploration and production. It aims to increase output by at least 7 per cent a year up to 2016, and to achieve a "reserve replacement ratio" of 120 per cent - meaning that for every five barrels extracted the company will find a further six. While Repsol has sought to move a greater part of its operations into politically stable jurisdictions, in part due to the traumatic expropriation of its YPF division by the Argentine government, it has also continued to explore in Libya. Initial results from a current exploration programme there are expected as soon as this week.