Saudi-based asset manager SNB Capital has announced plans to launch a sharia-compliant US$230 million fund that will invest in ‘top-tier’ oil and gas fields and developments.
The fund will be managed by SNB Capital’s Dubai subsidiary SNB Capital
The first act of the SNBC Capital Oil and Gas Fund I will be to indirectly invest in Repsol E&P, a joint venture between Spanish energy company Repsol and US-based investment manager EIG.
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Based in Spain, Repsol E&P is an independent exploration and production company operating oil and gas fields in OECD jurisdictions. The financial details of the investment were not disclosed although Respol will retain a majority stake in the venture.
The company has a production capacity equivalent to 600,000 barrels of oil per day, with half of its reserves and resources located in North America.
The fund launch not only marks a significant step into the energy sector for SNB Capita, it also increases its holdings in OECD jurisdictions.
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It is also expected to bolster SNB Capital’s assets under management which currently stand at $66 billion.
However, the fund launch also bucks a trend in the wider financial sector whereby firms are pulling back from their involvement in the oil and gas sector.
In recent weeks, UK bank Barclays announced that it would stop directly financing new oil and gas fields.