Saudi Arabia’s SNB Capital launches $230m oil and gas fund

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Saudi investment bank and asset manager SNB Capital has launched a fund that has raised more than $230m and will provide investors with exposure to the oil and gas sector under a shariah-compliant structure.

The SNB Capital Oil & Gas Fund I, as the fund is known, will invest in Repsol E&P, a joint venture between Spanish energy company Repsol and private equity firm EIG Global Partners. It was established by the asset management firm’s Dubai subsidiary.

Mohammed Al-Saggaf, head of Wealth Management at SNB Capital said the fund will foster the investment bank’s engagement with stakeholders while unlocking unparalleled global opportunities for investors.

The transaction creates a unique opportunity to acquire a large-scale portfolio with a production capacity of 600,000 barrels of oil equivalent per day.

Repsol will retain a majority stake in the venture 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 asset management firm said in a statement.

SNB Capital is the biggest asset manager in Saudi Arabia with $66bn assets under management as of December 2023.

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