Spain's Repsol will return cash to shareholders if it fails to identify a company or assets that meets its acquisition goals, Chief Financial Officer Miguel Martinez said on a conference call on Thursday.

Repsol has been searching for acquisitions to boost its exploration and production business and on Wednesday said a deal with Talisman Energy Inc had been among the options it was considering.

Martinez declined to make any further comments on the group's M&A plans on Thursday's conference call, but said: "If we don't find the right company or assets we'll have to return the cash to shareholders."

Reporting by Tracy Rucinski