A double move by the Spanish oil company Repsol in North America with its commitment to renewable energies, at a time of divestment in fossil fuels: on the one hand, it has entered the field of onshore wind energy in the United States through the acquisition of the renewable energy company and on the other hand, ConnectGen is divesting its assets from Oil and gas in Canada.
Hence, Repsol wants ConnectGen (with a project portfolio of 20,000 MW) In exchange for approximately 715 million euros for the American fund specializing in the energy and energy transition sectors, Quantum Capital Group. In this way, the Spanish oil company is taking a new step to accelerate its multi-energy transition and become a net-zero emission company in 2050.
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To retreat.
According to the Spanish company, the acquisition of ConnectGen will strengthen its “solid” capabilities in the United States, as well as its international experience, by adding an important platform for the growth of onshore wind energy that complements the solar and storage development capabilities acquired after the purchase of the Spanish company. 40% of Hecate Energy in 2021. This company specializes in developing solar PV and battery energy storage projects and has a project portfolio of more than 40,000 MW.
ConnectGen employees, including the management team, will join Repsol Renovables, contributing their expertise at different stages of the enterprise value chain and “deep” knowledge of the US renewable energy sector.
Sell in Canada
Meanwhile, Repsol has agreed to sell exploration and production assets in Canada to energy group Beto for €433 million, as part of its strategy to focus activity on areas it considers key, according to Bloomberg News. I informed the company.
The deal, which is expected to close in mid-October, includes all mining rights, facilities and infrastructure related to Repsol’s oil and gas exploration and production business in Canada, including assets in the Greater Edson region, which have net production of 23 barrels. of oil equivalent per day (kilo barrels of oil/day), mainly gas.
The company explained that it is refocusing its exploration and production portfolio by rotating assets to focus and consolidate in key areas, preferably in OECD countries, with a particular focus on the United States.
The company’s portfolio has been rationalized through a series of divestments in non-strategic locations, reducing Repsol’s exploration and production presence from 25 to 14 countries following the sale of assets in Vietnam, Malaysia, Papua New Guinea, Australia, Greece and Pakistan. Morocco, Iraq, Bulgaria, Ecuador and Russia, focusing new developments in key areas such as the United States and Brazil, in addition to executing selective acquisitions in unconventional assets and in US waters.
