UK oil and gas producer Harbour Energy has commenced negotiations to merge with US-based oil and gas company Talos Energy, reported Reuters, citing four people familiar with the matter.

A potential deal could lead to listing of the combined company in New York. This would offer access to oil and gas-focused investors and banks for Harbour, the sources said.

Harbour CEO Linda Cook decided to scale back spending on North Sea assets, and the company is also considering diversifying its operations to foreign countries after the UK Government imposed a windfall tax in 2022 on oil and gas companies due to increased energy prices.

The UK Government increased the windfall levy on oil and gas companies from 25% to 35%, bringing the sector’s total tax to 75%.

Harbour, which has a global workforce of 1,700, is also reducing its staff in the UK by around 350 people.

The company had held on-and-off talks about a merger with Talos for at least six months. Negotiations between the companies have been restored in recent weeks, the sources said.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

However, sources noted that there is no guarantee that an agreement between Harbour and Talos would be reached.

In 2023, Talos aims to produce up to 71,000 of barrels of oil equivalent per day in the Gulf of Mexico.

Recently, Talos agreed to offload 49.9% stake in its Mexican unit to Zamajal, a wholly owned subsidiary of Grupo Carso.