Ithaca Energy has brokered a deal to purchase Siccar Point Energy, which operates the controversial Cambo oil project in the UK’s North Sea, for approximately $1.5bn.

As per the terms of the agreement, Ithaca Energy will make an upfront payment of $1.1bn, and contingent payments of up to $360m.

The deal encompasses Siccar Point’s 70% operated stake in Cambo, and its 20% non-operated holding in Rosebank.

The deal will also add the Schiehallion and Mariner fields to Ithaca’s portfolio. Both of the fields are currently in the top ten UK producing fields.  

Ithaca Energy CEO Alan Bruce said: “This is a transformational deal for the company, which cements Ithaca’s position as a leading independent E&P operator in the North Sea.

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“The acquisition doubles our recoverable resources and means that we now have interests in a significant portion of the largest UKCS fields. This includes interests in two of the UK’s most strategically important and near-term developments, which will enable us to play an increasing role in securing domestic energy supply for the UK. This enlarged portfolio will underpin production of 80,000-90,000 barrels of oil equivalent per day for the next decade, with the potential for further growth through low-risk drilling.

The agreement also covers Siccar Point’s interest in the producing Jade gas field, in which Ithaca is an existing partner.

Siccar Point Energy suspended the Cambo project after Royal Dutch Shell withdrew its stake in the project amidst environmental pushback, in December 2021.

Ithaca Energy, which is owned by Israel’s Delek Group, has noted that it will develop Cambo, as well as the nearby Rosebank field.

Bruce added: “The development of the Cambo and Rosebank fields is a huge opportunity to not only help secure the UK’s energy future for at least another quarter of a century, but also to create thousands of direct and indirect jobs in the process.”

Situated more than 1,000m underwater, Cambo is thought to contain approximately 800 million barrels of oil, but the UK government regulators are yet to grant the final approval for its development.

The field, during its 25-year operational life, is expected to deliver 170 million barrels of oil equivalent.

Following the completion of the deal, the Siccar Point team and Operatorship of key UK assets will be handed over to Ithaca.