Saudi Arabia’s SNB Capital’s Dubai-based subsidiary, SNB Capital (DIFC) Limited has launched a new fund to provide investors with global exposure to oil and gas fields and developments through an innovative Shariah-compliant structure.
The fund has already raised over $230 million and it will offer exposure to a global E&P (exploration and production) portfolio with a production capacity of around 600,000 barrels of oil equivalent per day, SNB Capital said in a press release.
The fund’s first investment will be in Repsol E&P, a joint venture (JV) between EIG and Spanish energy firm Repsol. Repsol will retain a majority stake in the JV while leveraging EIG’s “long track record of investing across the capital structure in the global E&P sector to maximise value creation, enhancing the strengths of Repsol E&P”, the announcement said.
“This pioneering oil and gas fund serves as a testament to SNB Capital’s commitment to enhancing our international role, fostering deeper engagement with stakeholders and unlocking unparalleled global opportunities for our investors while achieving sustainable economic diversification, innovation, and prosperity in the investment sector,” said Mohammed Al-Saggaf, Head of Wealth Management at SNB Capital.
R. Blair Thomas, Chairman & CEO of EIG added, “We are excited to partner with a regional leader and sector expert like SNB Capital as we seek to accelerate Repsol E&P’s path toward decarbonization, strong cash flow generation and market liquidity.
“Our work with SNB Capital is another important step in positioning EIG to meet the twin goals of decarbonisation and reliability and bolstering our ability to meet the growing global demand for accessible, efficient and safe energy.”
SNB Capital is the largest asset manager in Saudi Arabia with $66 billion of assets under management as of December 2023.
