Spanish energy company Repsol is reviewing options for its upstream unit, including a possible reverse merger with APA Corporation and other US-listed partners, as it considers ways to list the business in New York. Bloomberg reported that Repsol has held preliminary discussions with APA and approached additional potential partners. Individuals familiar with the talks noted that discussions continue, but no agreement is assured.
Repsol’s chief executive Josu Jon Imaz told analysts that the upstream division is being prepared for a liquidity event planned for 2026. Options under review include an initial public offering, a reverse merger, or bringing in a new private investor. The company has not commented publicly on the talks, and APA stated that it does not respond to market speculation.
Repsol previously sold 25% of the upstream business to EIG Global Energy Partners in 2022, in a transaction valuing the division at $19 billion, including debt. The sale was intended to support the unit’s expansion in the US and provide capital for low-carbon activities.
During the first nine months of the year, Repsol recorded 549,000 barrels of oil equivalent per day of production, compared to 571,000 boepd in 2024. Its upstream operations span the US, Mexico and Brazil, and current project milestones include start-up at the Leon-Castile (Salamanca) fields, progress on the Pikka oilfield in Alaska where it holds 45%, and the upcoming launch of Lapa South West in Brazil. These developments are expected to add 50,000 boepd net by 2027.
Repsol has also advanced portfolio changes this year, completing a North Sea asset merger with NEO Energy and announcing the planned sale of its last remaining upstream asset in Indonesia, the Sakakemang PSC, alongside MedcoEnergi’s separate acquisition of Repsol’s 24% interest in the Corridor PSC for $425 million. In September 2025, MedcoEnergi additionally agreed to acquire interests in two production sharing contracts in South Sumatra for up to $90 million.
APA, meanwhile, continues to derive most of its production from the Permian Basin and the Gulf of Mexico, with output comprising 51% oil, roughly one-third natural gas, and the remainder natural gas liquids. The US sector has seen operators reduce spending and staffing as high-quality drilling sites diminish, alongside broader consolidation aimed at improving efficiency.
Shares in APA rose 7.3% following reports of the discussions, and have increased 16% over the past year, valuing the company at approximately $9 billion. Repsol’s shares climbed 2.2% after the news.
Source: Bloomberg, Reuters, Upstream
