Ithaca Energy to create 'thousands of jobs' after £1.1billion deal

Ithaca Energy has agreed to buy Siccar Point Energy in a deal worth around £1.1billion.

The company said the acquisition - which includes stakes in the Cambo and Rosebank oil fields - will position it as one of the leading oil and gas operators in the UK North Sea.

Alan Bruce, chief executive of Ithaca, told investors last night that the development of those assets would create thousands of jobs and enhance the UK’s energy future for at least 25 years.

Investment

Ithaca Energy has been investing heavily in the North Sea over the last three years, acquiring producing and development assets from Chevron, Mitsui, Marubeni, Sumitomo (to be completed) and now Siccar Point.

The acquisition will accelerate Ithaca’s growth, positioning it as one of the leading E&P operators in the UK North Sea, adding some of the UK’s largest oil and gas fields to its portfolio.

The Siccar Point team and the assets will all transfer to Ithaca on closing, doubling the latter’s recoverable reserves, and will support production of 80,000 – 90,000 barrels of oil equivalent per day through the next decade.

Siccar Point also holds stakes in the BP Schiehallion (11.75%) and the Equinor Mariner (8.89%) fields, both in the top 10 producers in the UK.

Cambo 'opportunity'

Ithaca said last night that Cambo and Rosebank represent an "opportunity" to develop fields that "will contribute significantly to the UK’s energy security".

The Cambo field on its own is anticipated to deliver up to 170 million barrels of oil equivalent during its 25-year operational life.

Ithaca said this would materially help to reduce the need for the import of more carbon intensive alternatives and increase the UK’s energy independence through the energy transition.

New jobs

Alan Bruce, CEO of Ithaca Energy, commented: “This is a transformational deal for the company which cements Ithaca’s position as a leading independent E&P operator in the North Sea.

"The acquisition doubles our recoverable resources and means that we now have interests in a significant portion of the largest UKCS fields. This includes interests in two of the UK’s most strategically important and near-term developments which will enable us to play an increasing role in securing domestic energy supply for the UK.

"This enlarged portfolio will underpin production of 80-90kboe/d for the next decade, with the potential for further growth through low-risk drilling.

We firmly believe that this transaction will deliver value for all of our stakeholders including the local community and wider UK economy.

"The development of the Cambo and Rosebank fields is a huge opportunity to not only help secure the UK’s energy future for at least another quarter of a century, but also to create thousands of direct and indirect jobs in the process.

"We are excited about the future for the enlarged Ithaca, the role we will play in the UKs energy supply, and look forward to welcoming our new colleagues from Siccar Point.”

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