US private equity firm EIG has acquired a 25% stake in Repsol Upstream, a newly-formed, gas-weighted exploration and production company from Spanish energy group Repsol, for $4.8bn, including debt.
Repsol Upstream comprises the entire global upstream oil and gas business of Repsol. This includes over 600,000 barrels of oil equivalent per day of production and operations in 15 countries, including the US.
The unit has been acquired by EIG’s newly formed, wholly-owned subsidiary Breakwater Energy.
The transaction implies a total enterprise value of approximately $19bn for Repsol Upstream, in which Repsol holds a 75% stake.
Subject to favourable market conditions, Repsol and EIG look to list Repsol Upstream in the US from 2026.
EIG chairman and CEO R Blair Thomas said: “Repsol is a leader in the energy transition, and we are pleased to have completed this transaction with a global company that shares our commitment to reducing emissions while meeting the world’s energy demands.
“The transaction sets Repsol Upstream on a path toward an accelerated decarbonisation future, strong cash flow generation, and potential market liquidity.”
As per the deal, which was signed in September 2022, EIG holds the right to nominate two members to Repsol Upstream’s eight-member board of directors.
Repsol will appoint four members to Repsol Upstream’s board while the remaining two will be independent.
EIG will also appoint two senior executives to Repsol Upstream’s leadership team, one to serve as ESG Director and the other to lead special projects, including IPO preparedness.