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CEO Repsol says that the company is not in a rush to list its upstream unit on US stock exchange.

Josu Imaz, the chief executive of Repsol, said that the company is not in a hurry to list the oil and gas production unit it has in the United States. This will temper expectations for a 'initial public offering' or reverse merger.

Imaz said in late 2018 that its upstream unit is preparing for a liquidity event by 2026. This could be an IPO, or a reverse merge with a listed company?in the U.S.

He said that while the unit is technically "ready to go to the American market", it would be better if the fundamentals of the upstream sector improve in the next few months.

He said, "We're comfortable with the current situation. We won't jump into a liquid event in the near future." When asked if he was interested in a possible IPO or the alternative to going public - a reverse merger.

Imaz spoke after Spain's largest refinery operator, Imaz, reported strong quarterly results.

Imaz said that Repsol, and its partner, U.S. Private Equity Fund EIG, who has a 25% stake in the upstream unit "are fully on board with this view".

In 2022 Repsol sold its stake in an agreement that valued the entire business at $19 billion including debt. The deal contemplated the?potential U.S. IPO? from 2026, depending on market conditions.

The unit has assets in several countries including the United States - namely, the Pikka oil development in Alaska, which is one of?group?s key growth developments - as well as Brazil Mexico Libya and Venezuela.

Imaz stated that Repsol's upstream businesses was showing a broad overall progress. He cited developments in Venezuela, "where production is growing with the support of both Venezuelan authorities and U.S. Authorities", as well as advancements in Alaska and Libya.

(source: Reuters)