UK-based oil and gas operator Ithaca Energy has announced the completion of acquisition of Chevron North Sea Limited (CNSL) for $2bn.

The acquisition deal was initially announced in May 2019. The transaction was effective from 1 January 2019.

The deal has added ten producing field interests to Ithaca’s existing portfolio, which amounts to an approximate 300% increase in the company’s forecast 2019 production and a 150% increase in its proven and probable (2P) reserves.

Ithaca Energy is a wholly owned subsidiary of Delek Group, who first announced its bid to acquire Chevron’s North Sea assets in April 2019.

Delek Group CEO Asi Bartfeld said: “With 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.”

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Ithaca paid $200m deposit at deal signing while conventional working capital payable at acquisition completion was around $1.5bn.

Ithaca Energy CEO Les Thomas said: “Completion of the CNSL acquisition marks a major milestone in the long term development of Ithaca Energy.

“The significantly enlarged operations provide an excellent platform from which to maximise 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 organisation that is well set-up to deliver upon our investment plans and secure the future success of the business.”