- Ithaca Energy acquires most of Eni’s British oil and gas assets for £754 million, boosting its production capacity and reserves in the North Sea.
- Eni became a key shareholder, reducing Delek’s stake in Ithaca to 50.7%, while Ithaca appointed former Eni UK CEO Luciano Vasques to lead the new entity.
- The deal fits Eni’s “satellite” strategy, enabling it to focus on decarbonisation projects like carbon capture and storage (CCUS) while Ithaca expands its role in regional consolidation efforts.
Ithaca Energy purchased most of Eni’s British oil and gas assets for £754 million (US$993 million), solidifying its position as a leading independent producer in the North Sea. The deal, executed through a share exchange, excludes Eni’s Irish Sea interests and carbon capture and storage (CCUS) projects.
After the acquisition, Delek, which held 82.7% of Ithaca, now controls 50.7%, while Eni becomes a key shareholder. This move boosts Ithaca’s production capacity and reserves, expanding its influence in a region undergoing significant change.
Ithaca named Luciano Vasques, former CEO of Eni UK, CEO of the new entity. His appointment reflects the company’s goal of merging the strengths of both organisations to drive future growth.
Eni structured the deal as part of its broader “satellite” strategy, which divides its assets by region to attract targeted investors. Eni pursued similar ventures in Angola with BP, forming Azule Energy, and in Norway by creating Vår Energi with a private equity partner. These partnerships allow Eni to diversify risks while maximising profitability with regional partners.
Eni stays connected to the British market by maintaining a strategic stake in Ithaca while shifting operational duties to a more agile partner. This approach follows a trend among major oil companies in the North Sea, where high costs and ageing fields prompt them to hand over operations to smaller, more focused firms.
Ithaca seized this opportunity to expand. The company now leads regional consolidation efforts and plans to acquire more large-scale assets. Other independent operators and financial investors, drawn by the North Sea’s potential for growth, may follow Ithaca’s lead.
This acquisition occurs amid rising regulatory pressures and increased focus on decarbonization. North Sea energy producers face the challenge of balancing fossil fuel production with climate goals, complicating investment strategies. Ithaca’s increased capacity equips it to navigate these shifting demands.
While retaining its CCUS projects, Eni underscores its commitment to energy transition solutions. CCUS technology remains crucial to achieving the North Sea’s climate targets, and Eni may explore future partnerships with Ithaca in this field.
Eni’s investment strengthens Ithaca’s ability to reduce capital costs and access resources for future projects. Whether focused on traditional oil extraction or integrating decarbonisation technologies, Ithaca stands poised to capitalize on its expanded role in the North Sea.
This acquisition not only enhances Ithaca’s market position but also aligns with Eni’s strategy to streamline its portfolio. Ithaca now emerges as a major player in the region, ready to lead the management and development of mature oil and gas assets.