Equinor has agreed to sell to Repsol its 63% interest in, and operatorship of, its onshore business in the Eagle Ford Shale play in South Texas, for $325 million, Kallanish Energy reports.
The transaction covers all of Equinor’s interests in the Eagle Ford joint venture with Repsol, covering 69 000 net acres. Following this transaction Repsol will own 100% of the acreage.
“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 Torgrim Reitan, Equinor’s 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”, said Reitan.
Equinor entered the Eagle Ford in 2010 through a joint acquisition with Talisman Energy USA (now owned by Repsol) from Enduring Resources. In 2015, Equinor increased its interest in the joint asset from 50% to 63% and assumed full operatorship.
The effective date of the transaction is Oct. 1, 2019.
In a separate agreement, Repsol will acquire a 20% non-operated interest in the Monument prospect Equinor is drilling in the Northwest Walker Ridge area in the Gulf of Mexico. Equinor plans to commence drilling this well before the end of the year.
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