Saudi National Bank’s $230m fund to energise oil sector 

SNB Capital

SNB Capital, the investment arm of Saudi National Bank, has launched a $230 million oil and gas fund to offer investors exposure to top-tier energy companies.

The Shariah-compliant fund launched by a Dubai-based unit of SNB Capital will invest indirectly in Repsol E&P, a joint venture between Spain energy giant Repsol and US-headquartered investment company EIG.

Repsol will retain a majority stake in the joint venture, but no details were given. In September 2022, EIG acquired a 25 percent stake in Repsol Upstream, an exploration and production (E&P) company.

The new investment will help acquire a large-scale portfolio with a production capacity of 600,000 barrels of oil equivalent per day.

Repsol E&P operates oil and gas fields and developments in OECD jurisdictions, with nearly 50 percent of the reserves and resources in North America. 

SNB Capital, licensed by the Saudi market regulator, has $66 billion in assets under management as of December 2023.

In October 2023, Opec secretary general Haitham Al Ghais said that the oil group estimates around $14 trillion will need to be invested in the oil sector from now to 2045 to ensure energy security for Europe and the rest of the world.

He added that calls to stop investing in oil were counterproductive and energy security was “the cornerstone” of global economic prosperity.

Despite this, oil and gas investment growth will be subdued at four percent in 2024, according to research and business intelligence company Rystad Energy.

Only $800 million will enter the oil and gas sector, while renewables and clean technologies markets should see a flow of $1.2 trillion.

“Supply chain constraints and inflated goods and services prices are severely impacting fossil fuel spending, while renewable and cleantech pricing has come down, especially for batteries and solar,” Rystad said in a note.