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Spanish company sold thesis

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It sold shares of Repsol, oil and gas exploration units in many countries, and transferred its last assets in Russia to Gazprom Neft in January.

According to the information provided by three sources close to the subject, the US fund plans to buy 25 percent of Repsol’s upstream units, which carry out exploration and production activities of underground resources such as oil and natural gas, in cash. If the agreement is achieved, funds will be provided for the Spanish company to increase its pure power generation capacity, such as solar power plants and wind farms.

While sources did not reveal the cost of the expected contract, analysts stated that the cost of Repsol’s upstream units is in the middle between 14 billion and 18 billion euros ($15-19 billion), including debts.

PARTIES ARE BARGAINING

Sources revealed that mid-party negotiations started after EIG made an offer to buy Repsol without any invitation.

Sources, who did not want to be named due to the private conduct of the negotiations, stated that the talks could last for months and there is no guarantee that an agreement will be made.

Repsol and EIG left Reuters’ questions on the subject unanswered.

EUROPEAN OIL AND NATURAL GAS INDEX INCREASED

Shares of Repsol rose nearly 3 percent to their highest level since June 2008. Europe’s overall oil and gas index rose 0.4 percent.

If the deal is reached, Repsol will have received funding to increase its low-carbon power generation capacity to 7.5 gigawatts by 2025, more than double its current level. One gigawatt roughly corresponds to the output of a nuclear power plant.

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