Repsol has agreed to divest its Canadian oil and gas assets to energy group Peyto for 468 million dollars (433 million euros) as part of a strategic shift toward regions deemed core by the company. The disclosure was made to the National Securities Market Commission (CNMV) on Thursday and signals a recalibration of Repsol’s international footprint in favor of higher-priority basins and mature markets.
The completion of the deal is expected around mid-October, subject to customary closing conditions, including the attainment of any required regulatory approvals. The transaction covers all mining rights, facilities, and infrastructure connected with Repsol’s oil and gas exploration and production operations in Canada, including the assets in the Greater Edson area and an output of approximately 23 thousand barrels of oil equivalent per day, largely in the gas sector.
Repsol outlined a portfolio refocusing plan that emphasizes the United States and other OECD economies, aiming to concentrate assets in select geographical hubs while consolidating operations in core regions. The rationalization involved liquidating assets at sites deemed non-strategic, reducing the company’s exploration and production presence from 25 to 14 locations, with departures from Vietnam, Malaysia, Papua New Guinea, Australia, Greece, Morocco, Iraq, Bulgaria, Ecuador, and Russia. The emphasis now shifts toward growth in the United States and Brazil, alongside selective investments in non-traditional assets and U.S. waters.
Operational continuity in Canada is to be maintained through Repsol’s own platform, LNG St. John, and related commercial and logistics activities will continue under its management, with the aim of preserving ongoing operations and service commitments in the region.
The broader value and strategic direction of Repsol’s asset base were reflected in the company’s partnership with EIG, which acquired a 25% stake and valued the unit at about $4.8 billion (€4.476 billion). The total enterprise value cited reached around $19 billion (approximately €17.721 billion), surpassing market expectations and signaling a stronger-than-anticipated scale for the company’s exploration and production segment.
Company leadership framed the sale as a step toward a net-zero emissions trajectory, describing the transaction as enabling accelerated transformation and a reinforced multi-energy profile. This shift is also seen as a lever to reduce leverage and debt levels while maintaining robust cash flow to support ambitious growth plans and attract shareholder value, all within a more resilient financial framework.
RBC Capital Markets acted as Repsol’s financial advisor in the transaction with Peyto, guiding the sale and coordinating the deal structure and negotiations with regulatory and market participants.