Offshore staff
ABERDEEN, UK/MILAN, Italy — Eni has agreed to combine the majority of its UK upstream business, aside from its East Irish Sea and CCUS activities, with Ithaca Energy’s UK offshore portfolio.
The combination will be funded through the issue to Eni UK of new ordinary shares that will represent 38.5% of the enlarged issued share capital of Ithaca.
Pending regulatory and other approvals, the two companies aim to complete the transaction this summer.
Ithaca has become one of the largest oil and gas independents on the UK Continental Shelf, with stakes in six of the UK North Sea area’s 10 largest fields.
Eni UK, following Eni’s recent acquisition of Neptune Energy, includes operatorship of the Cygnus Field in the southern gas basin and shares in 10 producing fields: Elgin, Franklin, West Franklin, Glenelg, Judy, Joanne, Jasmine and Jade, Seagull and Tommeliten A.
The combined group would form the second largest independent UK offshore operator with 2024 production of more than 100,000 boe/d and the potential to reach 150,000 boe/d by the early 2030s.
Eni is looking to replicate other recent combinations involving use of the company’s Satellite Model (including Vår Energi in Norway and Azule Energy in Angola). The transaction would enable it to pursue growth on the UKCS and, as a long-term and supportive shareholder of Ithaca, the company would offer its technical and operational support capabilities.
Potentially, the combined group could draw on Eni’s wide-ranging operational specialties, such as its subsurface technical capabilities, innovation center, and digital tools, along with its exploration capabilities, including access to proprietary supercomputer and rigorous screening process.
The new business’ interests in currently producing fields and the sanctioned Rosebank development west of Shetland, in which Ithaca is a partner to Equinor, should sustain its production above 100,000 boe/d through at least 2028.
The combined 2P reserves and 2C resources base of 658 MMboe (51% liquids, 49% gas) provides an estimated resource life of 15 years, with interest in 37 producing assets, and stakes in six of the 10 largest fields on the UKCS (including Rosebank, Cambo, Schiehallion, Mariner Area, Elgin/Franklin and J-Area).
04.25.2024
