Ithaca Energy, Eni strike deal to combine certain UK assets

April 24, 2024
Ithaca Energy plc and Eni SPA will combine certain UK assets.

Ithaca Energy plc and Eni SPA will combine certain UK assets in a deal valued around $938 million (OGJ Online, Mar. 27, 2024).

The agreed deal will combine Eni's upstream UK Continental Shelf assets with existing Ithaca Energy UK offshore assets. The deal includes assets Eni acquired from Neptune Energy, but excludes Eni’s East Irish Sea assets and carbon capture, storage, and utilization (CCUS) activities (OGJ Online, June 23, 2023).

The merger includes 37 producing assets and stakes in six of the 10 largest fields on the UKCS (including Schiehallion, Mariner Area, Elgin-Franklin, and J-Area, plus undeveloped Rosebank and Cambo). The combine is expected to produce more than 100,000 boe/d in 2024 with the potential to grow to 150,000 boe/d by the early 2030s, Eni said.

Combined long-life 2P reserves and 2C resources from the fields are 658 MMboe with 49% gas weighting. Resource life is expected to be more than 15 years based on 2023 pro-forma production.

The combination is being funded through the issue to Eni UK of new ordinary shares that represent 38.5% of the enlarged issued share capital of Ithaca, worth about £754 million ($938 million) on share closing price Apr. 23. Completion of the deal is expected in third-quarter 2024, subject to regulatory and other conditions.