8 April 2022

Ithaca acquires Siccar Point – what’s next for Cambo?

Ithaca Energy has reached an agreement to acquire Siccar Point Energy adding four of the UK’s largest oil and gas fields to its portfolio.

Shetald
Shetland © Hamish Duncan/Unsplash

The agreement includes an upfront payment of US$1.1 bln and a series of contingent payments totalling a maximum of US$360 mln. The Siccar Point team and Operatorship of key UK assets will transfer to Ithaca on closing.

The addition of the Schiehallion and Mariner fields, both currently in the top 10 UK producing fields, will not only add immediate production but also add significant room for growth through future drilling. Also included is an interest in the producing Jade gas field, where Ithaca is an existing partner, offering further near-term drilling exposure. The transaction will also include the Cambo and Rosebank fields, two of the largest undeveloped and most strategically important discoveries in the UK North Sea.

The acquisition of Siccar Point’s assets across the West of Shetland, Northern North Sea and Central North Sea, will add significant production, material growth potential, and a long-life cycle to Ithaca.

Cambo and Rosebank represent an opportunity for Ithaca to develop fields that will could fit with the UKs new energy strategy on energy security.  Cambo alone is anticipated to deliver up to 170 mln barrels of oil equivalent during its 25-year operational life.

A final investment decision is expected on both fields next year.

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