SNB Capital launches $230m oil and gas fund
The fund will indirectly invest in Repsol E&P in which Repsol will retain a majority stake
Dubai: SNB Capital Company is launching SNB Capital Oil & Gas Fund through its Dubai-based sibsidiary, the company said on Wednesday. The SNB Capital Oil & Gas Fund I launched by SNB Capital (DIFC) Limited will offer investors the chance to gain from a global portfolio of Exploration & Production (E&P) assets.
With more than $230 million raised, the fund will indirectly invest in Repsol E&P, a joint venture between EIG and Repsol. The Spain-based energy and petrochemical company Repsol – which wants to become a net zero emissions company by 2050 – will hold a majority stake in the joint venture.
This transaction is set to create a unique opportunity to acquire a large-scale portfolio with a production capacity of around 600,000 barrels of oil equivalent per day.
Repsol E&P is an independent exploration and production company operating premium-quality oil and gas fields and developments primarily in OECD jurisdictions, with approximately 50 percent of the reserves and resources located in North America.
“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,” said Mohammed Al-Saggaf, Head of Wealth Management at SNB Capital.
SNB Capital is the largest asset manager in Saudi Arabia with $66 billion of assets under management as of December 2023.
R. Blair Thomas, Chairman & CEO of EIG added, “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.
"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.”