Harbour set to strengthen UK North Sea production via Waldorf purchase

Harbour Energy has agreed to a deal to acquire most of the subsidiaries of Waldorf Energy Partners and Waldorf Production, currently in administration, for $170 million.

Assuming regulatory approvals and full settlement of all creditor claims against the subsidiaries, completion of the deal should go through in second-quarter 2026.

Harbour would gain oil-weighted production in the UK North Sea of 20,000 boe/d and 2P reserves of 35 MMboe.

The company would add a further 40% interest in the Catcher Field in the central UK North Sea, raising its operated stake to 90%. In addition, it would gain a new production base in the UK northern North Sea via a 29.5% interest in the EnQuest-operated Kraken heavy oil field.

Moreover, Harbour sees operational and financial synergies arising from the acquisition, the latter via the release of an estimated $350 million of cash currently posted to secure Waldorf’s decommissioning liabilities, using Harbour’s investment grade balance sheet.

The company made its move despite having commented on the difficulties of operating in the sector due to the UK’s petroleum tax regime.

"This transaction is an important step for Harbour in the UK North Sea, building on the action we’ve already taken to sustain our position in the basin given the ongoing fiscal and regulatory challenges. It stabilizes the Catcher joint venture partnership and delivers immediate cash flow benefits. It also improves the long-term sustainability of our UK business, the jobs it continues to support and the energy security it provides. In addition, it facilitates a welcome solution to funding and decommissioning challenges for multiple parties in the UK North Sea.”

—Scott Barr, Managing Director, Harbour Energy’s UK Business Unit

In a separate Dec. 12 news release, Capricorn reported that it has entered into a lock-up agreement in support of this transaction and has agreed to compromise its unsecured claims against Waldorf for a payment of about $4 million to $5 million, which is the subject of a methodology agreed between Capricorn and certain of Waldorf's creditors. Capricorn says it will also retain the right to participate in potential residual claims.