Repsol reached a formal agreement with EIG, an American investment firm focused on energy infrastructure, to sell 25% of Repsol Upstream, the company’s hydrocarbon exploration and production arm, for 4,800 million dollars (4,850 million euros). The deal represents a strategic partnership that aligns Repsol’s existing portfolio with a long-term investor intent on supporting energy development while pursuing decarbonization goals across the global footprint.
According to information filed with the National Securities Market Commission (CNMV), the transaction value is structured as 3,400 million dollars (3,435 million euros) in equity consideration and 1,400 million dollars (1,415 million euros) in net debt assumption associated with the shareholding stake. This capitalization framework reflects both the immediate value of the stake and the responsibility for existing liabilities linked to the unit at the time of transfer.
In the accompanying note, Repsol estimates the acquisition price for Repsol Upstream at 19,000 million dollars (19,203 million euros). This valuation anchors the deal in a market context where the price reflects expected cash flows, asset quality, and the potential to optimize portfolio performance through enhanced governance and strategic alignment with investor objectives.
The note further states that the operation implies an enterprise value of 8.3 dollars per 2P barrel of oil equivalent (EV/2P), above the 2022 global average of 5.7 dollars per 2P barrel in comparable transactions. This premium indicates confidence in the stability and growth potential of Repsol Upstream, driven by its production base, resource quality, and the ability to scale operations under new ownership while maintaining a disciplined capital strategy.
The agreement covers Repsol Upstream’s global exploration, development, and production portfolio, with estimated output of 570,000 barrels of oil equivalent per day for 2022 and proven and probable reserves (2P) totaling about 2.3 billion barrels, of which roughly 70% is natural gas. This composition underscores the asset mix and the resilience offered by a gas-heavy resource base within a broader energy transition plan.
Repsol Upstream also includes contingent resources (2C) totaling around 3,600 million barrels of oil equivalent, which adds to the upside optionality that the new 25% stake would help unlock through optimized development programs and disciplined project execution. The structure envisions a scenario where the partner contributes not only capital but strategic governance that can accelerate the realization of these resources under safety, efficiency, and sustainability standards.
The resulting entity controlled by EIG will own 25% of Repsol Upstream, while Repsol will retain the existing workforce, management team, and the current business plan. The arrangement signals a clear focus on strengthening and decarbonizing the global portfolio, including the potential for an initial public offering of a portion of the business in the United States starting in 2026, should market conditions and strategic objectives align. This path would provide liquidity options and further capital for ongoing energy transition initiatives.
Repsol will continue to hold a majority stake and maintain overall control of the division, with continued consolidation within the Repsol Group’s accounts. The investment is described as providing a fresh capital infusion that supports ongoing energy transition initiatives, while preserving the core governance framework and strategic direction that have guided the company through recent industry cycles. The accompanying note emphasizes that this move strengthens the capital structure without sacrificing strategic sovereignty or operational continuity for Repsol and its Upstream operations.