New Saudi Fund to Invest Over $230MM in Repsol-EIG JV

Newly launched SNBC Capital Oil & Gas Fund I has raised more than $230 million and will indirectly invest in Repsol E&P, a joint venture between Spain’s Repsol SA and energy institutional investor EIG.

The fund was launched by SNB Capital’s Dubai-based subsidiary, SNB Capital (DIFC) Limited, and aims to “provide investors with global exposure to top-tier oil and gas (O&G) fields and developments through an innovative Shariah-compliant structure”, SNB Capital said in a news release Wednesday.

Repsol E&P is an independent exploration and production (E&P) company operating premium-quality oil and gas fields and developments primarily in Organisation for Economic Co-operation and Development (OECD) jurisdictions, with approximately 50 percent of the reserves and resources located in North America, according to the release. Repsol will retain a majority stake in the joint venture and “leverage EIG’s long track record of investing across the capital structure in the global E&P sector to maximize value creation”, the release said.

The investment “creates a unique opportunity to acquire a large-scale portfolio with a production capacity of [approximately] 600,000 barrels of oil equivalent per day”, Saudi Arabia-based SNB Capital said.

“This pioneering oil and gas fund serves as a testament to SNB Capital’s commitment to enhancing our international role, fostering deeper engagement with stakeholders and unlocking unparalleled global opportunities for our investors while achieving sustainable economic diversification, innovation, and prosperity in the investment sector”, Mohammed Al-Saggaf, Head of Wealth Management at SNB Capital, said.

“We are excited to partner with a regional leader and sector expert like SNB Capital as we seek to accelerate Repsol E&P’s path toward decarbonization, strong cash flow generation and market liquidity”, EIG Chairman and CEO R. Blair Thomas said. “Our work with SNB Capital is another important step in positioning EIG to meet the twin goals of decarbonization and reliability, and bolstering our ability to meet the growing global demand for accessible, efficient and safe energy”.

SNB Capital Company, a licensed entity by the Capital Market Authority (CMA), describes itself as a leading regional financial institution with deep industry expertise across asset management, wealth management, securities, investment banking, and principal investment. SNB Capital is the largest asset manager in Saudi Arabia with $66 billion of assets under management as of December 2023, according to the release.

EIG describes itself as a leading institutional investor in the global energy and infrastructure sectors with $22.9 billion under management as of December 31, 2023. The company specializes in private investments in energy and energy-related infrastructure on a global basis. During its 41-year history, EIG has committed over $47.1 billion to the energy sector through over 405 projects or companies in 42 countries on six continents.

Repsol said its goal is to become a net zero emissions company by 2050. It is present throughout the energy value chain and distributes its products in more than 90 countries to 24 million customers. To achieve its net zero goal, Repsol said it is committed to a model that integrates all decarbonization technologies, based on improving efficiency, increasing its renewable electricity generation capacity, the production of renewable fuels, the development of new solutions for customers, the circular economy, and the promotion of cutting-edge projects to reduce the industry’s carbon footprint.

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