Multiply Group, an investment company located in Abu Dhabi, said that it has paid AED 367M ($100M) for a minority position in Breakwater Energy.
With a primary focus on gas assets, this strategic investment places Multiply Group as a co-owner of a highly lucrative and diversified global upstream portfolio. The purchase represents a considerable value proposition with a long reserve life and an encouraging dividend profile.
Samia Bouazza, Group CEO and Managing Director at Multiply Group, stated that the minority stake in Repsol E&P through EIG’s Breakwater Energy aligns well with their Multiply+ portfolio. Bouazza highlighted that Multiply Group is in a strong position to actively pursue valuable acquisition opportunities. The investment in Repsol, aimed at supporting low-carbon energy projects, adds further intrigue to the transaction from their perspective.
Previously, Repsol E&P, a gas-weighted exploration and production firm that includes all of Repsol’s international upstream oil and gas operations, saw the acquisition of a 25% share from EIG, a well-known institutional investor in the energy and infrastructure sectors. The vast portfolio of Repsol includes 15 nations and has a daily output rate of about 550,000 boe/d.
“Energy transition is fundamentally changing our industry and requires new thinking about capital allocation and asset stewardship,” said R. Blair Thomas, CEO of EIG. We consider it an honour to embark on that road with reputable investors like Multiply.
Breakwater Energy acquired Repsol E&P in March 2023 for approximately $4.8B, while Repsol retained a 75% stake. Repsol wants to use the money from the deal to broaden its low-carbon platforms internationally.