Ithaca Energy to Acquire Eni's UK Oil and Gas Assets in $938M Deal
Ithaca Energy, controlled by Israel's Delek Group, signed a definitive agreement to acquire Eni's UK oil and gas assets for $938 million. The merger will boost production past 100,000 barrels per day.
Ithaca Energy, the North Sea operating arm of the Delek Group, has signed a definitive and binding agreement to acquire the entire UK oil and gas production assets of Italian energy giant Eni and merge them into its operations. The transaction is valued at $938 million (approximately £750 million) and will be executed through a share-for-share exchange.
In exchange for the assets, Ithaca will issue shares to Eni representing 37.3% to 38.7% of the enlarged company. Following the share allocation, the stake held by the Delek Group, controlled by Yitzhak Tshuva, will be diluted from approximately 89.6% to about 52%. Delek will retain control of Ithaca alongside a leading international partner. Negotiations and the exclusivity period granted to Ithaca were reported earlier this year, and the understandings have now been cemented into a binding agreement.
Alongside the merger, Ithaca has announced a target for dividend distribution of $500 million per year. According to the company, the merger will significantly expand its operations and make it one of the largest independent oil and gas producers on the UK Continental Shelf (UKCS). The combined company's production is expected to exceed 100,000 barrels of oil equivalent per day, while proven and probable reserves are projected to increase by about 100 million barrels of oil equivalent to approximately 660 million barrels.
The acquired assets, which include the Cygnus, Elgin/Franklin, and J-Area fields, will significantly broaden Ithaca's operational portfolio in the region.
