Israeli Ithaca Energy has agreed to buy Siccar Point Energy’s North Sea oil and gas assets, accelerating its growth and positioning it as a major UK North Sea operator, it said April 7.
The deal was announced the day the UK Government issued its Energy Security Strategy which has stressed the importance of domestic oil and gas production over imports.
But Ithaca had been on the acquisition trail for almost six months with its purchase of Summit E&P in late February and of Marubeni Oil & Gas last November.
Ithaca will pay the private-equity funded Siccar Point $1.1bn up front and a further $360mn maximum linked to future developments and $60mn linked to commodity prices. The deal doubles Ithaca’s recoverable reserves and supports production of at least 80,000 barrels of oil equivalent/day through the next decade.
The price includes the Siccar Point team and its producing Schiehallion and Mariner fields, both in the top 10 producing UK fields.
Also included is an interest in the producing Jade gas field and the Cambo and Rosebank fields, two of the largest undeveloped and most strategically important discoveries in the UK North Sea.
Ithaca is owned by Delek Group, part of the pioneering gas production partnership in Israel’s sector of the Mediterranean Sea responsible for the Leviathan and Tamar developments. For more on Delek, please see here. For more on Ithaca, please see here.