Equinor has completed the previously announced sale of its onshore business in the Eagle Ford, Texas, US, to Spanish energy company Repsol for $325m.
As part of the initial announcement made last month, Equinor sold its 63% interest in the Eagle Ford asset, as well as its operatorship.
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The company noted that the divestment covers all of its interests in the Eagle Ford joint venture (JV) with Repsol, which covers 69,000 net acres.
With the completion of the acquisition, Repsol owns a 100% working interest in the asset and becomes the operator.
The acquisition enables Repsol to improve its producing assets portfolio management and leverage operating synergies.
During the initial announcement, the company noted that the acquisition aligns with its 2018-2020 Strategic Plan, which identifies North America as a primary business area.
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By GlobalDataWith the added stake in the asset, Repsol will be able to progress in achieving its strategic goals associated with portfolio upgrading, profitable growth and increased returns.
Repsol acquired approximately 70,000 net acres and 34,000boe/d of production in the asset, which will reach a total output of 54,000 barrels of oil equivalent a day.
In 2010, Equinor, formerly known as Statoil, formed a 50-50 JV with Talisman Energy to acquire the Eagle Ford asset from Enduring Resources. Repsol agreed to buy Talisman Energy in 2014.
Equinor increased its stake in the asset from 50% to 63% in 2015.
In the second quarter of this year, Equinor’s US onshore operations produced a capacity of approximately 309Mboe/d.
The company’s upstream activities in the US are managed from Houston, Texas.
