Harbour Energy, one of the UK’s biggest oil and gas companies, is entering the Gulf of America through the £3.2 billion acquisition of LLOG Exploration Company from LLOG Holdings.

The deal involves $2.7bn in cash and $0.5bn in Harbour shares. It strengthens Harbour’s global portfolio and establishes another core business unit alongside Norway, the UK, Argentina and Mexico.

Linda Z Cook, CEO at Harbour, said: “Today’s announcement delivers on Harbour’s long-standing ambition to establish a presence in the deepwater Gulf of America.

“With LLOG, we found the right combination of high-quality assets and a talented team, providing a strong strategic and cultural fit with our company.

“The transaction positions us as a leading player in a region with well-established infrastructure, a supportive fiscal and regulatory environment and opportunities for additional growth.”