MOSCOW (MRC) -- Spanish energy group Repsol is selling a 25% stake in its oil and gas exploration division to U.S. fund EIG for USD4.8 B, building up a warchest for renewables projects as the energy industry moves to a lower-carbon future, said Reuters.
The deal, first reported by Reuters earlier this year, values the whole business at USD19 B including debt, and may lead to a U.S. stock market listing of a stake in the unit after 2026, Repsol said in a statement.
The process started with an unsolicited offer from EIG, Reuters reported in June, sending Repsol's shares to a 14-year high.
As per MRC, Repsol will build a new plant in Tarragona, with an investment of over EUR35 M for the manufacture of Cross-linkable Polyethylene (XLPE), a polymer used in cable insulation, located between the conductor and the outer protective layers. The plant will have an annual capacity of 27 kt and is scheduled to start in mid-2024. The LSHC (Linear Short Hyperclean) new technology selected for the plant, from Buss AG, will provide a product with very competitive properties, enabling Repsol to complete its product range for cables by incorporating materials for HV (high voltage) and EHV (extra-high voltage) cables.
Repsol is currently the leading producer and consumer of hydrogen on the Iberian Peninsula, and has renewable hydrogen as one of its key transformation pillarsfor achieving its goal of being a company with zero net emissions by 2050. The multi-energy company has its own renewable hydrogen strategy to deploy projects throughout the value chain, with a planned investment of 2,549 million euros by 2030.