EIG Global Energy Partners LLC has agreed to acquire 25% of Repsol SA’s oil and gas exploration and production division for $3.4 billion.
(Bloomberg) — EIG Global Energy Partners LLC has agreed to acquire 25% of Repsol SA’s oil and gas exploration and production division for $3.4 billion.
The deal offer consists of $3.4 billion equity and $1.4 billion net debt, Repsol said in a regulatory filing Wednesday. The “value implies an enterprise value of $19 billion for 100% of Repsol Upstream,” according to the filing.
The deal, which came after an unsolicited approach by EIG, is Repsol’s second sizable divestment in recent months. The Madrid-based oil producer sees minority stake sales as a way to raise funds to help pay for low emission projects while also reducing the cost of capital.
The Spanish firm agreed in June to sell a 25% stake in its clean energy unit to a joint venture formed by Energy Infrastructure Partners AG and French lender Credit Agricole SA for 905 million euros. It has also sold stakes in individual renewable energy projects.
Repsol was the first large oil company to announce a strategic push into renewable power. In late 2019,it wrote down the value of its oil assets by 4.8 billion euros and said it targeted net-zero carbon emissions by 2050.
Washington-based private equity firm EIG focuses investments largely on energy and infrastructure globally.
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