UKCS tie-up

Ithaca hails ‘transformational’ deal with Italy’s Eni

Ithaca Energy
Ithaca will become the second biggest independent operator in the North Sea

North Sea oil and gas operator Ithaca Energy has agreed to a deal with Eni SpA, the Rome-based energy business which the two firms describe as “transformational”.

Ithaca, which is behind the controversial Cambo and Rosebank oil fields, said it would combine its North Sea activities with Eni’s UK upstream assets. In return, Eni, will take a 38.5% interest in the expanded Ithaca.

The deal, announced after the close of the London Stock Exchange, will create a continental shelf powerhouse – the second largest independent operator in the UKCS by 2024 production – producing 100,000 to 110,000 barrels of oil equivalent per day.

It is forecast to be the largest operator in the UKCS by production in 2030 with potential to organically grow production to 150,000 boepd by the early 2030s, whilst supporting ongoing shareholder returns, Ithaca said.

Ithaca said the combination would be “highly” cash-generative with an ambition for up to $500 million total dividends this year and next.

Executive chair Gilad Myerson said: “The transformational combination with Eni UK will further enhance Ithaca Energy’s position as a leading UKCS production and growth company, with positions in six of the 10 largest UKCS assets in the basin.”

He said the deal should “unlock long-life organic growth opportunities creating a combined entity with substantial scale and longevity.”

The deal is expected to complete in the third quarter of this year. Eni will be entitled to recommend the nomination of the next proposed CEO. 

Ithaca owns a majority of the Cambo site in the North Sea, and bought a 20% stake in Rosebank in 2022.

Last September it took the final decision alongside Norway’s Equinor to invest $3.8 billion (£3bn) to develop Rosebank. It has not yet taken a final decision over Cambo.

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