ABERDEEN, UK – Ithaca Energy has agreed to acquire Siccar Point Energy, creating one of the UK’s leading North Sea/West of Shetland operators.
The transaction, with an estimated value of up to $1.47 billion, would bring Ithaca operatorship of the undeveloped Cambo oilfield northwest of Shetland; interests in the deepwater Rosebank oil project in the same region and the producing Mariner field in the East Shetland basin, both operated by Equinor; and further shares in the Schiehallion and Jade areas, operated respectively by bp and Harbour Energy.
Ithaca expects the package to double its recoverable reserves and support production of 80,000 – 90,000 boe/d through the next decade.
The new field developments will employ the latest technology to reduce emissions, and should operate without the need for routine flaring or venting of hydrocarbons, the company added, supporting its goal of cutting CO2 output from its UK production by 25% by 2025.
Cambo, which had been put on hold late last year following partner Shell’s decision to pause investment in the project, should deliver up to 170 MMboe during its 25-year operational life, Ithaca said.
Final Investment Decisions for Cambo and Rosebank should follow in 2023, boosted by the UK government’s decision to support new investments in oil and gas to safeguard energy security.
Gilad Myerson, Ithaca’s executive chairman, said his company had been on a rapid growth journey over the past three years: “In that time, we have acquired producing and development assets from Chevron, Mitsui, Marubeni, Sumitomo (to be completed) and now Siccar Point,” he said.
Myerson added: “In addition, we have made significant investments to develop oil and gas prospects and resources around our infrastructure hubs – Captain (EORII), Alba (Fotla) and the Greater Stella Area (Vorlich, Abigail).”