Equinor Inks $325MM Deal to Sell Eagle Ford Assets to Repsol

Equinor Inks $325MM Deal to Sell Eagle Ford Assets to Repsol
Equinor has signed an agreement to divest its position in the Eagle Ford to Repsol for $325 million.

Norway’s Equinor ASA has signed an agreement to divest its 63 percent interest in, and operatorship of, its onshore business in the Eagle Ford to Spanish oil and gas company Repsol S.A. for $325MM, the company announced Thursday.

The transaction includes all of Equinor’s interests in the Eagle Ford joint venture with Repsol, covering 69,000 net acres. Repsol will possess a 100 percent interest in the asset, upon closing.

“This transaction supports Equinor’s strategy to optimize our onshore U.S. portfolio, enhancing our financial flexibility and focusing our capital on our core activities in the country,” Torgrim Reitan, Equinor’s executive vice president for Development and Production International, said in a company statement.

“The US is a core area for Equinor, demonstrated by recent acquisitions including assets in the Gulf of Mexico, onshore acreage in the Austin Chalk and the Empire Wind project offshore New York,” he added.

Bloomberg reported back in March that Equinor was considering a sale of its operations in the Eagle Ford as it focused on other stateside projects.

Equinor, which was previously Statoil ASA, entered the Eagle Ford asset in 2010 through a joint acquisition with Talisman Energy USA (now owned by Repsol). In 2015, Equinor increased its interest in the joint asset from 50 percent to 63 percent and took on full operatorship.

The Eagle Ford asset sale will have an effective date of Oct. 1, 2019.

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