Harbour Energy enters Gulf of Mexico with US$3.2bn LLOG acquisition

BRITISH oil and gas producer Harbour Energy is entering the US Gulf of Mexico through the US$3.2bn acquisition of privately held LLOG Exploration Company.

LLOG is one the largest privately held oil and gas producers in the US and operates several deepwater projects in the region, including the Leon-Castile project offshore Louisiana and the FPU Salamanca in Keathley Canyon.

Harbour Energy CEO Linda Z Cook said the deal would establish the company as a significant presence in the region.

“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,” she said.

“The oil-weighted deepwater LLOG portfolio enhances our production profile, provides significant operational control, extends reserve life and improves our margins.”

US expansion

LLOG had been exploring a sale since October, shortly after first production from the Salamanca FPU. Shell was previously reported to have shown interest in the company, with a bid of around US$3bn.

The acquisition marks a strategic expansion for Harbour, which currently operates across ten countries and has a strong presence in the UK North Sea. The company recently announced job losses in the UK, citing the impact of what it described as an “uncompetitive” windfall tax regime.

Harbour’s move into the Gulf of Mexico aligns with a renewed focus on US oil and gas investment, as federal policy has shifted towards encouraging domestic production.

Since the introduction of President Trump’s “Big Beautiful Bill” earlier this year, oil and gas companies have benefited from lower royalty rates and expanded leasing opportunities in federal offshore waters.

North Sea commitment

LLOG has been developing its Who Dat floating production project since 2011, which is currently producing 21,000 bbl/d of oil and 51m ft3/d of natural gas.

Despite its US expansion, Harbour has reiterated its commitment to the North Sea. The company recently announced plans to acquire the assets of Waldorf Energy, a transaction expected to add around 20,000 bbl/d to its production portfolio.