Italian Eni and British Ithaca Energy Combine Assets in the UK
Italian oil and gas company Eni SpA said it has signed an agreement with Britain’s largest independent oil and gas company Ithaca Energy plc to combine virtually all of its upstream assets in the UK, excluding those in the East Irish Sea and CCUS.
The combination is financed by the issue by Eni UK of a number of new ordinary shares representing 38.5% of the enlarged issued share capital of Ithaca Energy plc. The economic effective date of the merger will be June 30, 2024.
The transaction is expected to close in the third quarter of 2024, subject to regulatory conditions.
Ithaca Energy has interests in six of the ten largest fields and two of the largest producing fields in the UK.
Eni previously carried out similar mergers with Vår Energi in Norway and Azule Energy in Angola.
As a result of the merger: production in 2024 will be from 100,000 to 110 boe/d, total reserves will be 658 million boe, with participation interests in 37 producing assets and interests in 6 of the 10 largest fields (including Rosebank, Cambo, Schiehallion, Mariner Area , Elgin/Franklin and JArea). The merger will create a portfolio with a gas share of 49%.
