Repsol and Partners Achieve First Oil Production in Leon-Castile Fields
Repsol, along with partners LLOG Exploration Offshore and O.G. Oil & Gas, has successfully initiated the first production of oil in the deep-water Leon-Castile fields offshore Louisiana. This achievement strengthens Repsol’s upstream business in the United States.
Production Details
- Oil production has commenced in a well at the Leon field.
- Two more wells are expected to start operations this year in Leon and the adjacent Castile field.
- Two additional wells are planned to begin operations in 2026.
Repsol holds a 50% stake in Leon and a 35.62% interest in Castile, along with a 2.5% share in the floating production unit (FPU) ‘Salamanca’. The FPU has an initial operational capacity of 60,000 barrels of oil per day and 40 million cubic feet of gas per day.
First Renovated Installation in the Gulf of Mexico
The Leon-Castile project marks the first time a production platform has been renovated in the Gulf of Mexico, resulting in an estimated 87% reduction in emissions compared to building a new one. This renovation also significantly reduced the time required to bring these discoveries online.
Strategic Project
Located in a significant deep-water oil-bearing basin, Repsol, under the leadership of Josu Jon Imaz, highlighted that Leon-Castile is a “strategic project adding substantial long-term energy production to the U.S. and reflecting Repsol’s strong commitment to a key investment region in the Exploration and Production business.”
Repsol’s Long-standing Presence in the Gulf
Repsol has been active in the Gulf for over two decades, participating in multiple discoveries such as Buckskin (2009) and Leon (2014). The company is also a partner in the Shenzi field. In addition to development projects, Repsol is exploring over 81,000 hectares in the basin and advancing its first carbon capture and storage project off the coast of Texas, near Corpus Christi.
Repsol’s Focus on the United States
In the U.S., Repsol has exploration and production assets in Texas, Pennsylvania, Alaska, and the Gulf. The company also has 1,400 megawatts of solar and energy storage capacity in Texas and New Mexico, as well as over 20 gigawatts of renewable energy projects under development in thirteen states.
Repsol operates an extensive network for crude oil, products, and natural gas trading in the country. It employs nearly 800 people in the U.S. and has invested over $24 billion in the country since 2008 across all business lines.
Repsol concentrates its upstream portfolio in key geographical areas with competitive advantages, particularly in OECD countries like the U.S. and Brazil.
Agreement with EIG
In 2022, Repsol reached an agreement with the U.S.-based fund EIG to bring in a 25% stake in its upstream business, valued at $4.8 billion, which values the company’s exploration and production operations at $19 billion.
The EIG-Repsol agreement included the possibility of a minority stake exit in Repsol’s U.S. upstream business through an IPO or merger starting from 2026, should market conditions be favorable.
During a recent analyst conference to present the first-half results, Repsol CEO Josu Jon Imaz hinted at potential strategies for preparing the upstream business for a possible U.S. listing in 2026, including an IPO, acquisition, reverse merger, or private investor participation.
