Repsol explores merging its $19B oil unit with APA Corp. for a potential NY listing in 2026.

Repsol SA is exploring a reverse merger between its $19 billion upstream oil and gas unit and U.S. energy company APA Corp., along with other potential partners, to accelerate a possible New York listing, according to people familiar with the matter. The upstream unit, which produced about 551,000 to 571,000 barrels of oil equivalent per day in Q3 and operates in the U.S., Brazil, and Mexico, including the Pikka project in Alaska, is being prepared for a liquidity event possibly in 2026. Options under consideration include an IPO, reverse merger, or private investment. Repsol sold a 25% stake to EIG Global Energy Partners in 2022, valuing the unit at $19 billion including debt. APA’s shares rose following the report, but no decisions have been made, and talks remain exploratory. Repsol, APA, and EIG have declined to comment.