Repsol sells 25% stake in upstream business to EIG for $4.8bn

Repsol said on Wednesday that it has agreed to sell a 25% stake in its upstream business to US fund EIG for $4.8bn.

The Spanish energy and petrochemical group said the transaction values the upstream business at $19bn, which exceeds analysts' consensus valuations of the unit.

It added that the agreement with EIG includes the possibility of listing a minority stake of the business in the US from 2026 onwards.

Repsol will retain operational control of the business and consolidate it within the wider group. It said the unit will continue to focus growth on key regional hubs and with a diversified portfolio of exploration and production assets in OECD countries.

Chief executive officer Josu Jon Imaz said: "Our ambition is to lead the energy transition. This pioneering agreement allows us to maintain the strategic direction of the upstream unit and, at the same time, to boost the transformation of the company and its multi-energy profile to achieve zero net emissions by 2050."