Nov 13 (Reuters) - Spain's biggest refinery operator

Repsol SA is considering a reverse merger of its

upstream unit with potential partners, including U.S. energy

producer APA, Bloomberg News reported on Thursday,

citing people with knowledge of the matter.

APA shares were up 7.1% at $25.59.

Repsol in 2022 entered into a deal to sell a 25% stake in

the upstream division to private equity firm EIG Global Energy

Partners, valuing the whole business around that time at $19

billion including debt.

The upstream unit has net hydrocarbon production of about

571,000 barrels of oil equivalent per day, according to the

company website.

The report comes weeks after Repsol CEO Josu Jon Imaz said

the upstream unit was being prepared for a liquidity event in

2026, which could mean an IPO or a reverse merger with a company

listed in the U.S.

The Spanish company has held exploratory discussions with

potential merger partners for the business, including APA, the

Bloomberg report said.

An APA spokesperson declined Reuters request for comment,

while Repsol did not immediately respond.