Equinor sells Eagle Ford asset to Repsol for $325m

Energy firm Equinor has agreed to divest its 63% interest and operatorship of its onshore business in the Eagle Ford in Texas, US.

Comprising a $325m deal, Equinor’s agreement with respect to the divestment was signed with Spanish energy company Repsol.

The Eagle Ford asset covers around 69,000 net acres.

Following the completion of the transaction, Repsol will own a 100% interest in the asset and becomes the operator.

The agreement enables Repsol to improve its producing assets portfolio management and leverage operating synergies.

Equinor Development and Production International executive vice-president Torgrim Reitan said: “This transaction supports Equinor’s strategy to optimise our onshore US portfolio, enhancing our financial flexibility and focusing our capital on our core activities in the country.

“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.”

Repsol noted that the acquisition aligns with its 2018-2020 Strategic Plan, which identifies North America as a primary business area.

In a press statement, Repsol said: “Repsol is acquiring approximately 70,000 net acres and 34,000boe/d of production so that total output for Repsol at Eagle Ford after the agreement will reach approximately 54 thousand barrels of oil equivalent a day.”

In 2010, Equinor, formerly known as Statoil ASA, formed a 50-50 joint venture with Talisman Energy to acquire the Eagle Ford asset from Enduring Resources. Spain’s Repsol agreed to buy Talisman Energy in 2014.

Equinor increased its stake in the asset from 50% to 63% in 2015.

Separately, Equinor revealed that Repsol will acquire a 20% non-operated interest in the Monument prospect.

Located in the Northwest Walker Ridge area in the Gulf of Mexico, the well will be drilled by Equinor later this year.