Spanish oil and gas company Repsol is currently in discussions to sell a stake in its renewable energy division, reported Reuters, citing sources.  

The move is aimed at funding the company’s growth plan through 2027.  

Sources indicated that Repsol has received an unsolicited offer from an investor, with Santander acting as the advisor for the potential transaction.  

Repsol and Santander opted not to comment, the publication said.  

The potential deal would allow the investor to contribute new capital to the renewable business. It is understood that Repsol intends to retain a majority share in the unit.  

However, the talks are at a preliminary stage and there is no guarantee that the sale will proceed.  

Repsol's renewable energy arm, which includes a portfolio of wind farms and solar plants, is currently valued at €5.9bn, inclusive of debt, as per a UBS research note from April. 

In 2022, Repsol divested a 25% stake in this division to Crédit Agricole Assurances and Energy Infrastructure Partners as part of its diversification strategy away from oil and gas.  

This strategy has seen Repsol open its renewable projects to investors such as Inditex founder Amancio Ortega, who are interested in acquiring minority stakes. 

The company's deal-making efforts have been key to its shift, with Repsol entering the US onshore wind market through the acquisition of ConnectGen last year, following its purchase of Asterion Energies and a 40% stake in US renewables developer Hecate Energy.  

In February, Repsol reaffirmed its commitment to this transition, while acknowledging the ongoing importance of fossil fuels in the energy mix. 

Repsol has outlined a gross investment plan of up to €26bn through 2027, dedicating as much as €9bn to low-carbon and renewable initiatives.  

Last week, it was reported that Repsol, alongside Santos, is contemplating the divestment of minority stakes in their joint Alaskan oilfields.