Ithaca Energy in exclusive talks to acquire Eni’s UK business

Ithaca Energy plc has entered into an exclusivity agreement to potentially acquire nearly all of Eni SpA’s UK upstream assets, including the recently acquired Neptune Energy assets, but excluding certain assets including Eni’s CCUS and Irish sea assets (OGJ Online, June 23, 2023).

Through a potential deal, Eni would contribute its UK business in exchange for the issuance of new Ithaca Energy shares to Eni, with Eni anticipated to hold 38-39% of the enlarged issued share capital of Ithaca Energy following completion.

The assets span four key hubs: TotalEnergies-operated Elgin Franklin (ENI, 21.9%), J-Area, Cygnus, and Seagull. Ithaca is a partner in Elgin Franklin (6.1%) and Harbour Energy-operated Jade fields (25.5%).

Eni’s UK business had 2023 pro forma production of 40,000-45,000 boe/d and 2P reserves of about 100 MMboe as of Dec. 31, 2023, Ithaca Energy said in a release Mar. 27.

The combination would add scale and diversification to Ithaca’s business, growing pro forma production to above 100,000 boe/d, creating the second largest independent operator in the UK Continental Shelf by production, the companies said.

The discussions are at an advanced stage, Ithaca Energy said, but there can be no certainty that a deal will be reached.