KUALA LUMPUR, Sept 7 (Bernama) -- EIG, a leading institutional investor in the global energy and infrastructure sectors, has announced entering into a definitive agreement with Repsol S.A. (Repsol) to acquire a 25 per cent stake in Repsol Upstream, a newly-formed global exploration & production (E&P) company comprising Repsol’s entire global upstream oil and gas business.
“Energy transition informs every decision we make, and we are thrilled to partner with a global leader of Repsol’s stature on this compelling opportunity to lead change in our industry,” said R. Blair Thomas, EIG’s Chairman and CEO in a statement.
The strategic partnership delivers upfront capital to Repsol to increase its investment in the energy transition, specifically to support the growth of Repsol’s renewable power generation, renewable fuels, and circular products segments.
Under the terms of the agreement, a newly formed, wholly owned subsidiary of EIG, Breakwater Energy, will acquire the 25 per cent interest in Repsol Upstream for total consideration of approximately US$4.8 billion, including debt, with Repsol holding the remaining 75 per cent, indicating a total enterprise value of approximately US$19.0 billion for Repsol Upstream. (US$1 = RM4.501)
The company will be majority controlled by Repsol and consolidated in the accounts of Repsol.
Repsol Upstream is a leading, gas-weighted global E&P company that will own and operate Repsol’s globally diversified portfolio of upstream assets, delivering cash generative and resilient operations around key regional hubs, with a focus on the United States.
Repsol Upstream will maintain the business’s current workforce and existing management team. The company is expected to benefit from Repsol’s expertise as a benchmark upstream operator, as well as from EIG’s knowledge of global debt and equity capital markets and upstream experience, particularly in the United States, the North Sea, Brazil and Asia Pacific.
Repsol Upstream will also benefit from EIG’s recent expertise derived from its successful formation, transformation, and public listing of Harbour Energy.
EIG believes the transaction puts Repsol Upstream on a pathway towards future market liquidity—both Repsol and EIG foresee the potential to list the business in the U.S. from 2026 onward, subject to favourable market conditions.
For more information, visit www.eigpartners.com.
-- BERNAMA
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