Spanish oil and gas giant Repsol SA is selling a quarter of its exploration and production division for $3.4 billion to a US private equity firm, in a dramatic downsizing of its exposure to fossil fuels.
The transaction comes after 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.
Transaction details include:
- Net proceeds of $3.4 billion for Repsol;
- New upstream vehicle to be controlled by Repsol;
- Repsol to consolidate new joint-venture;
- Enterprise value to so-called 2P1 reserves ratio (EV/2P) of $8.3/barrel of oil equivalent;
- Deal to lower Repsol’s debt ratio to below 10%.
Read more: BNN Bloomberg
