The consideration of the agreement includes an upfront payment of US$1.1 billion and a series of contingent payments totalling a maximum of US$360 million (US$300 million linked to future developments and US$60 million linked to short-term realised commodity prices). The Siccar Point team and Operatorship of key UK assets will transfer to Ithaca on closing.
The transaction includes the Schiehallion and Mariner fields, both currently in the top 10 UK producing fields, an interest in the producing Jade gas field, where Ithaca is an existing partner, the Cambo and Rosebank fields, two of the largest undeveloped discoveries in the UK North Sea. The Cambo field on its own is anticipated to deliver up to 170 million boe during its 25-year operational life.
The acquisition will double Ithaca’s recoverable reserves and support production of at least 80 000 – 90 000 boe/d through the next decade.
Final investment decisions are expected on the Cambo and Rosebank fields next year.
Read the latest issue of Oilfield Technology in full for free: Spring 2022
Oilfield Technology’s first issue of 2022 begins with analysis from Wood Mackenzie on the disconnect between surging oil prices and US oil production growth and investment. The rest of the issue is dedicated to features covering sand removal technology, dissolvable frac plug technology, digitalisation of offshore operations, annular intervention, oilfield chemicals, subsea compression systems and smart instrument measurement.
Exclusive contributions come from TETRA Technologies, NOV, Archer, Expro, Locus Bio-Energy Solutions, AES Drilling Fluids, MAN Energy Solutions and Winters Instruments.
Read the article online at: https://www.oilfieldtechnology.com/offshore-and-subsea/08042022/ithaca-energy-reaches-agreement-to-acquire-siccar-point-energy/
You might also like
Equinor sells its Nigerian business, including its share in the Agbami oil field, to Nigerian-owned Chappal Energies.