Ithaca Energy Limited has completed the $2 billion acquisition of Chevron North Sea Limited (“CNSL”). The transaction provides a material and important step up in the scale and breadth of the Company’s asset base, adding ten additional producing field interests to the existing portfolio, along with a wider portfolio of investment opportunities from which to grow the future cashflows of the business and accelerate monetisation of the Company’s existing UK tax allowances.

Taking into account the interim period cashflows generated by CNSL since the transaction effective date of 1 January 2019, the $200 million deposit paid at signing of the transaction and conventional working capital adjustments, the price payable at completion of the acquisition was $1.5 billion.

Les Thomas, Ithaca Energy CEO, commented:
“Completion of the CNSL acquisition marks a major milestone in the long term development of Ithaca Energy. The significantly enlarged operations provide an excellent platform from which to maximise the value of our high-quality asset portfolio and establishes the Company as a leading UK North Sea oil and gas producer. We have a highly experienced organisation that is well set-up to deliver upon our investment plans and secure the future success of the business.  With this exciting backdrop, we look forward to contributing to the industry’s objective of maximising economic recovery for the UK North Sea over the years to come”.

Asi Bartfeld, Delek Group CEO, commented:
“With completion of the acquisition, we are delighted to have made a significant step towards our strategic objective of building the Delek Group’s position as a world class E&P business. The acquisition has established Ithaca Energy as a leading UK North Sea oil and gas company with a strong outlook and the opportunity set from which to deliver material value to the Delek Group and enhance its presence in the global energy markets.”

The following table summarises the producing field interests that have been acquired as part of the transaction.

Following completion of the transaction, Chevron is providing the security and remains financially responsible for the decommissioning obligations of CNSL in respect of its interests in the Heather and Strathspey fields and the Cambo exploration well.

Link to Ithaca Energy UK country profile