Shell UK agreed to farm out 50% non-working interest in two West of Shetland basin licenses to UK oil and gas operator Ithaca Energy plc. Financial terms were not disclosed.
The UK North Sea licenses, P2629 and P2630, contain the Tobermory gas discovery, Ithaca Energy said in a release Nov. 19.
Ithaca Energy, as part of its third-quarter report also released Nov. 19, listed estimated gross 2C resource at Tobermory of 60-65 MMboe as of Dec. 31, 2024.
Following completion of the farm-in, Shell UK will continue to hold a 50% stake in the Tobermory discovery and act as license operator.
The farm-out builds on the companies’ partnership in the UK Continental Shelf and fits into Ithaca Energy's broader strategy to expand investment in the West of Shetland area.
Shell UK and Ithaca Energy are existing 50-50 partners in the Tornado discovery.
As part of its third-quarter release, Ithaca said the Tornado project is progressing toward a financial investment decision (FID) with tendering and advancement of the Environmental Statement. Tornado's estimated gross 2C resource is estimated by Ithaca at 67 MMboe.
In the release announcing the deal, Yaniv Friedman, executive chairman, Ithaca Energy, said the West of Shetland "represents a key basin for the Group’s long-term growth, with the ongoing development of the Rosebank field and the continued progression of the Cambo and Tornado discoveries towards final investment decision."
