Spain’s Repsol SA has agreed to take over full operatorship of a joint venture with Equinor SA in the Eagle Ford Shale in Texas.
Equinor agreed to sell to Repsol its 63% interest in and operatorship of the Texas assets in which the two European producers had partnered. The $325 million transaction, giving Repsol 100% ownership, covers all of Equinor’s interests in the Eagle Ford joint venture, which covers 69,000 net acres.
“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,” said Equinor’s Torgrim Reitan, executive vice president for Development and Production International.
“The U.S. 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.”
Equinor, formerly Statoil SA, entered the Eagle Ford in 2010 through a joint acquisition with Talisman Energy USA, which now is owned by Repsol. The deal at the time was estimated to be worth $1.3 billion. In 2015, the Norwegian major increased its interest in the joint asset to 63% from 50%, and it assumed full operatorship.
In a separate agreement, Repsol also is acquiring a 20% nonoperated stake in the Monument prospect in the Gulf of Mexico from Equinor. Equinor plans to begin drilling the Monument well in the Walker Ridge blocks before the end of the year. No financial details were provided.