Ithaca Energy in talks to purchase Eni’s UK upstream oil and gas operations
(Bloomberg) – North Sea oil and gas producer Ithaca Energy Plc is in exclusive talks on a potential deal for Eni SpA’s UK upstream operations.
Acquiring the assets, which include recently purchased fields from Neptune Energy Group, would boost Ithaca’s North Sea production at a time when larger players are withdrawing from the aging basin. For Eni, a deal would further its so-called satellite model, where it splits off operations to reduce risk while retaining an interest.
The Italian giant would contribute its UK business in exchange for new Ithaca stock, holding 38% to 39% of Ithaca’s share capital following completion. The exclusivity arrangement runs for four weeks and discussions are already at an “advanced stage,” according to a statement Wednesday.
Ithaca shares rose 2.7% at 8:23 a.m. in London. Eni slipped 0.3% in Milan.
Eni operates across four key UK hubs, and Ithaca is already a partner in its Elgin Franklin and Jade fields. Taking on Eni’s assets, which had pro-forma production of 40,000 to 45,000 barrels of oil equivalent a day last year, would make Ithaca the second-largest independent operator on the UK continental shelf, according to the statement.
The potential deal excludes Eni’s carbon capture and storage and Irish Sea assets. It will require shareholder approval.
