Newly launched SNBC Capital Oil & Gasoline Fund I has raised greater than $230 million and can not directly put money into Repsol E&P, a three way partnership between Spain’s Repsol SA and power institutional investor EIG.
The fund was launched by SNB Capital’s Dubai-based subsidiary, SNB Capital (DIFC) Restricted, and goals to “present buyers with world publicity to top-tier oil and fuel (O&G) fields and developments via an modern Shariah-compliant construction”, SNB Capital mentioned in a information launch Wednesday.
Repsol E&P is an impartial exploration and manufacturing (E&P) firm working premium-quality oil and fuel fields and developments primarily in Organisation for Financial Co-operation and Growth (OECD) jurisdictions, with roughly 50 % of the reserves and sources situated in North America, based on the discharge. Repsol will retain a majority stake within the three way partnership and “leverage EIG’s lengthy observe file of investing throughout the capital construction within the world E&P sector to maximise worth creation”, the discharge mentioned.
The funding “creates a novel alternative to amass a large-scale portfolio with a manufacturing capability of [approximately] 600,000 barrels of oil equal per day”, Saudi Arabia-based SNB Capital mentioned.
“This pioneering oil and fuel fund serves as a testomony to SNB Capital’s dedication to enhancing our worldwide position, fostering deeper engagement with stakeholders and unlocking unparalleled world alternatives for our buyers whereas reaching sustainable financial diversification, innovation, and prosperity within the funding sector”, Mohammed Al-Saggaf, Head of Wealth Administration at SNB Capital, mentioned.
“We’re excited to associate with a regional chief and sector professional like SNB Capital as we search to speed up Repsol E&P’s path towards decarbonization, robust money movement technology and market liquidity”, EIG Chairman and CEO R. Blair Thomas mentioned. “Our work with SNB Capital is one other essential step in positioning EIG to satisfy the dual objectives of decarbonization and reliability, and bolstering our means to satisfy the rising world demand for accessible, environment friendly and protected power”.
SNB Capital Firm, a licensed entity by the Capital Market Authority (CMA), describes itself as a number one regional monetary establishment with deep business experience throughout asset administration, wealth administration, securities, funding banking, and principal funding. SNB Capital is the most important asset supervisor in Saudi Arabia with $66 billion of belongings beneath administration as of December 2023, based on the discharge.
EIG describes itself as a number one institutional investor within the world power and infrastructure sectors with $22.9 billion beneath administration as of December 31, 2023. The corporate makes a speciality of personal investments in power and energy-related infrastructure on a worldwide foundation. Throughout its 41-year historical past, EIG has dedicated over $47.1 billion to the power sector via over 405 initiatives or corporations in 42 nations on six continents.
Repsol mentioned its purpose is to develop into a web zero emissions firm by 2050. It’s current all through the power worth chain and distributes its merchandise in additional than 90 nations to 24 million clients. To realize its web zero purpose, Repsol mentioned it’s dedicated to a mannequin that integrates all decarbonization applied sciences, based mostly on bettering effectivity, rising its renewable electrical energy technology capability, the manufacturing of renewable fuels, the event of recent options for purchasers, the round economic system, and the promotion of cutting-edge initiatives to scale back the business’s carbon footprint.
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