UK-based independent oil and gas company Harbour Energy has agreed to acquire LLOG Exploration Company from LLOG Holdings in a transaction valued at $3.2bn.
The deal includes $2.7bn in cash and $500m in Harbour’s voting ordinary shares.
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This move marks Harbour’s entry into the US Gulf of Mexico and complements the company’s operations in Norway, the UK, Argentina, and Mexico.
Harbour said the deal will provide a significant presence in the deepwater US Gulf of Mexico, an offshore region with established infrastructure and supplier networks.
The transaction will also improve the supply chain across Harbour’s portfolio, including its projects in Mexico.
It is expected to close in late Q1 2026, subject to standard closing conditions, including regulatory approvals.
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By GlobalDataUpon completion, LLOG will hold about 11% of Harbour’s voting ordinary shares, with existing Harbour shareholders holding the remaining 89%.
The deal also includes a lock-up period of one year, applicable for 70% of the new shares issued to LLOG.
Harbour CEO Linda Z Cook said: “With LLOG, we found the right combination of high-quality assets and a talented team, providing a strong strategic and cultural fit with our company.
“The transaction positions us as a leading player in a region with well-established infrastructure, a supportive fiscal and regulatory environment and opportunities for additional growth.
“The oil-weighted, deepwater LLOG portfolio enhances our production profile, provides significant operational control, extends reserve life and improves our margins.
“In addition, the LLOG organisation brings decades-long experience in the Gulf of America with a successful track record, creating a solid foundation for Harbour in the area.”
LLOG operates more than 80 leases, primarily in the Mississippi Canyon and Keathley Canyon, along with a pipeline of drilling opportunities, including up to eight wells planned for 2026 and 2027.
Its portfolio includes assets such as Who Dat in Mississippi Canyon, along with Buckskin and Leon-Castile in Keathley Canyon, all of which are operated by LLOG.
These assets have a reported production of 34,000 barrels of oil equivalent per day (boepd), with operating costs of $12 per barrel of oil equivalent and a combined federal and state tax rate of approximately 23%.
The company’s assets have a 2P (proven and probable) reserves life of 22 years, and production is projected to nearly double by 2028, supported by its position in the Lower Tertiary Wilcox play.
Harbour said that the deal would increase its 2P reserves by 271 million barrels of oil equivalent (mboe), a 22% rise, and extend its reserves’ life from seven to eight years.
LLOG CEO Philip LeJeune said: “We are pleased to be joining an outstanding company and believe that by uniting our teams and expertise, we’re unlocking new possibilities, empowering our people, and setting the stage to achieve extraordinary results with Harbour.
“As we look to the future, we remain dedicated to maintaining the same high ethical and operational standards that have helped guide us for the past 48 years, but with a new partner whose shared vision of growth, innovation, and operational excellence will help us achieve significant successes through a strong collaborative culture.”
Recently, Harbour Energy and its partners made a gas and condensate discovery at the Camilla Nord prospect in the Gjoa area, offshore Norway.
