Israeli energy conglomerate Delek Group said on April 7 its North Sea subsidiary Ithaca has acquired private equity-backed Siccar Point Energy for $1.1 billion.
The acquisition, Delek said, was part of the plan for Ithaca’s IPO later this year, with the aim of increasing Ithaca’s daily production and guaranteeing its long-term reserves.
The deal will seal Ithaca’s position as a major North Sea producer, boosting its output by 8,000 to 9,500 boe/d to a range of about 75,000 to 85,000 boe/d.
Private equity funds Blackstone and Blue Water Energy formed Siccar Point in 2014 with an initial investment of $500 million, one of several private North Sea firms created in recent years that acquired assets from veteran producers such as Shell and BP that sought to reduce their operations in the aging basin.
Siccar Point became a major North Sea player after acquiring OMV’s portfolio for $870 million in January 2017. Its owners have not disclosed how much they have since invested in the company.
Siccar Point’s owners have attempted to sell the company several times in recent years with no success, sources have told Reuters.
The company holds stakes in two large oil fields—Mariner and Schiehallion, as well as stakes in the Rosebank and Cambo discoveries.
Shell, which holds a 70% stake in Cambo, last December said it had scrapped plans to develop the field, which became a lightning rod for climate activists.
RELATED:
UK Regulator Extends License for North Sea Cambo Oil Prospect
But following Russia’s invasion of Ukraine last month, the British government has urged North Sea companies to ramp up production, breathing new life into the project’s prospects.
“Development of these discoveries is a top priority for the British Government,” Delek said in its statement, adding that it will be the operator of the Cambo Field.
The non-contingent consideration in the deal was $1.1 billion, including $200 million in Siccar Point bonds maturing in March 2026.
The balance, approximately $900 million, will be paid by Ithaca using its existing RBL credit facilities, cash accrued by Siccar Point from Jan. 1, 2022 until the closing date, and cash available to Ithaca.
The transaction is expected to close around the end of the second quarter of 2022.
Recommended Reading
Classic Rock, New Wells: Permian Conventional Zones Gain Momentum
2024-12-02 - Spurned or simply ignored by the big publics, the Permian Basin’s conventional zones—the Central Basin Platform, Northwest Shelf and Eastern Shelf—remain playgrounds for independent producers.
Formentera Joins EOG in Wildcatting South Texas’ Oily Pearsall Pay
2025-01-22 - Known in the past as a “heartbreak shale,” Formentera Partners is counting on bigger completions and longer laterals to crack the Pearsall code, Managing Partner Bryan Sheffield said. EOG Resources is also exploring the shale.
E&Ps Pivot from the Pricey Permian
2025-02-01 - SM Energy, Ovintiv and Devon Energy were rumored to be hunting for Permian M&A—but they ultimately inked deals in cheaper basins. Experts say it’s a trend to watch as producers shrug off high Permian prices for runway in the Williston, Eagle Ford, the Uinta and the Montney.
E&P Highlights: Feb. 10, 2025
2025-02-10 - Here’s a roundup of the latest E&P headlines, from a Beetaloo well stimulated in Australia to new oil production in China.
Analysis: Middle Three Forks Bench Holds Vast Untapped Oil Potential
2025-01-07 - Williston Basin operators have mostly landed laterals in the shallower upper Three Forks bench. But the deeper middle Three Forks contains hundreds of millions of barrels of oil yet to be recovered, North Dakota state researchers report.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.