Ithaca Energy acquires Eni’s UK business in £750m deal

ITHACA Energy is acquiring the majority of Eni’s upstream assets in the UK. The deal will make Ithaca the second largest independent operator in the UK Continental Shelf (UKCS), producing more than 100,000 boe/d. The agreement excludes Italian energy company Eni’s East Irish Sea assets and carbon capture, use, and storage (CCUS) activities.

Eni will gain a 38.5% stake in the enlarged Ithaca as part of the deal, which is worth around £750m (US$938.1m).

The combination of assets will enhance Ithaca’s position as the largest independent operator on the UKCS by resource. It will also create an oil and gas company expected to produce 100,000–110,000 boe/d this year, with the potential to grow to 150,000 boe/d by the early 2030s. The enlarged Ithaca will have an interest in 37 producing assets and discovered recoverable reserves of 658m boe, with an expected resource life of more than 15 years.

As part of the deal, the companies will also enter a technical services agreement, allowing the combined company to gain operational and leadership support from Eni.

Ithaca and Eni’s UK business will combine effective from 30 June, with completion expected in Q3.

Claudio Descalzi, CEO of Eni, said: “The combination with Ithaca represents an exciting opportunity for us to bring together complementary portfolios establishing a material position on the UKCS with significant growth and optimisation opportunities…We have moved quickly after the acquisition by Eni of Neptune Energy to transform our competitive position in the UK and we see the opportunity for Eni and Ithaca to realise material long-term value in helping to address the key challenges of security, affordability, and sustainability of energy supply.”

Assets to combine

Ithaca is already one of the largest independent oil and gas companies on the UKCS and holds a stake in six of the ten largest fields in the area, including Elgin/Franklin and J-Area. The others are Rosebank, which received controversial approval last September, as well as Cambo, Schiehallion, and the Mariner Area, gained though its acquisition of Siccar Point Energy in 2022.

Ithaca also has a stake in two of the three largest undeveloped discoveries in the UKCS.

Meanwhile, Eni has an asset base across four key hubs in the UKCS: Cygnus, Elgin/Frankin, J-Area, and Seagull. Ithaca will also gain Neptune Energy assets, after Eni and its subsidiary Vår Energi bought the company last year.