Ithaca wraps $2B buy of Chevron’s North Sea fields

November 11, 2019, by Offshore Energy Today

Delek’s subsidiary Ithaca Energy has completed the $2 billion purchase of Chevron North Sea Limited, Chevron’s subsidiary operating several UK North Sea fields.

Erskine platform in the UK North Sea / Image by Chevron

“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,” Ithaca Energy said on Monday.

Taking into account the interim period cash flows generated by CNSL since the transaction effective date of 1 January 2019, the $200 million deposit paid at the signing of the deal and conventional working capital adjustments, the price payable at completion of the acquisition was $1.5 billion, Ithaca said.
Les Thomas, Ithaca Energy CEO said completion of the Chevron North Sea Limited acquisition marked a significant milestone in the long term development of Ithaca Energy.

“The significantly enlarged operations provide an excellent platform from which to maximize 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 organization 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 maximizing economic recovery for the UK North Sea over the years to come,” Thomas said.

Asi Bartfeld, Delek Group CEO, commented: “With the 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.”

Through the acquisition, Ithaca has acquired interests in the Captain, Alba, Erskine, Alder, Britannia, Brodger, Callanish, Enochdhu, Elgin/Franklin and Jade fields.