![assets in GoM](/sites/default/files/styles/hart_news_article_image_640/public/image/2023/03/shutterstock-777666469.jpg?itok=ET52GTMS)
EIG's acquisition of 25% interest in Repsol Upstream includes assets in the Gulf of Mexico. (Source: Shutterstock)
EIG Global Energy Partners’ subsidiary Breakwater Energy has acquired a 25% interest in Repsol’s E&P global upstream oil and gas business Repsol Upstream for $4.8 billion, EIG announced in a March 2 press release.
Repsol Upstream is a newly-formed gas-weighted E&P, which owns and operates Respol’s global upstream assets totaling more than 600,000 boe/d of production in 15 countries, including in the U.S. Repsol’s business unit operates in the Marcellus Shale, Alaska’s North Slope, the Gulf of Mexico and, since 2020, the Eagle Ford Shale, according to its website.
EIG, an institutional investor, said the portfolio maintains a low carbon intensity and generates free cash flow to support a meaningful dividend. Repsol still owns 75%.
Repsol and EIG plan to list the business in the U.S. starting in 2026, subject to favorable market conditions.
“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,” said R. Blair Thomas, EIG chairman and CEO. “The transaction sets Repsol Upstream on a path toward an accelerated decarbonization future, strong cash flow generation and potential market liquidity.’’
EIG will have the right to nominate two directors to Repsol Upstream’s board, four more will be nominated by Repsol and two directors will be independent for a total of eight directors. EIG will also choose Repsol Upstream’s ESG director and another senior executive to lead special projects, including IPO preparation.
Goldman Sachs & Co LLC and J.P. Morgan financially advised EIG with the transaction. Goldman Sachs, J.P. Morgan and Lazard acted as capital markets advisers for the transaction’s financing. Latham & Watkins and Debevoise & Plimpton served as legal advisers to EIG.
Recommended Reading
ProFrac, IWS Taking the Garbage Out of Oilfield Data Transfer
2024-07-16 - ProFrac and Intelligent Wellhead Systems’ MQTT protocol promises to speed up communications at the frac site, not only by saving costs but laying the foundation for future technological innovations and efficiencies in the field, the companies tell Hart Energy.
Exclusive: Blue Latitudes’ Ever-evolving Process to Decommission Offshore Rigs to Reefs
2024-06-05 - Environmental consulting firm Blue Latitudes looks at decommissioned offshore rigs as potential fisheries habitats, and the process is always evolving as the energy industry evolves, Amber Sparks, co-founder of Blue Latitudes, told Hart Energy's Jordan Blum at the Offshore Technology Conference.
Cracking the Fracking Code: Efficient Approaches to Optimize Wellbores
2024-06-30 - Technology and process innovations improve operational efficiencies even as companies scramble for greener fracking solutions.
OTC: E&Ps Improving Operational Safety with Digitization
2024-05-13 - Artificial intelligence and the digitization of the oilfield have allowed for several improvements in keeping operators out of harm’s way, panelists said during the 2024 Offshore Technology Conference.
Quantum Capital’s View on AI: Lots of Benefits, Pain Points
2024-05-16 - The energy industry is lagging in the race to implement AI, but Sebastian Gass, CTO of Quantum Capital Group, offered a few solutions during Hart Energy’s 2024 SUPER DUG Conference & Expo.