Bloomberg News reports that Repsol is considering merging its upstream unit with APA.

Bloomberg News, citing sources with knowledge, reported Thursday that Repsol SA, Spain's largest refinery operator, is considering a reverse merge of its upstream division with potential partners. This includes U.S. energy company APA.

APA shares rose 7.1% to $25.59.

In 2022, Repsol entered into an agreement to sell 25% of its upstream division to the private equity firm EIG Global Energy Partners. The entire business was valued at around $19 billion in that period including debt.

According to the website of the company, upstream has a net hydrocarbon production equivalent of about 571,000 bbls. of oil per day.

The report comes after Repsol CEO Josujon Imaz stated that the upstream unit is being prepared for a liquid event in 2026. This could be an IPO or a merger with a U.S. listed company.

Bloomberg reported that the Spanish company had held exploratory talks with potential merger partners, including APA.

A Repsol spokesperson did not respond immediately to a request for comment. Reporting by Tanay dhumal, Bengaluru. Editing by Shilpa Majumdar and Shalpsh Kuber.

(source: Reuters)