Chevron North Sea sells for US$2 billion

LONDON: May 2019. Ithaca Energy, part of the Tel Aviv stock exchange-listed Delek Group, is to purchase Chevron North Sea Limited (CNSL) for US$$2 billion.

The transaction will add a further 10 producing fields, (including ‘Captain’ pictured), to the Ithaca portfolio and result in a 150 percent increase in the company’s proven and probable reserves and a 300 percent rise in forecast 2019 production.

The enlarged portfolio of 18 producing fields is forecast to deliver pro-forma 2019 production of approximately 80,000 barrels of oil equivalent per day (60% liquids) at an operating cost of approximately US$17 per barrel of oil equivalent.

The acquisition establishes Ithaca as the second largest independent oil and gas producer in the UK North Sea and enables accelerated monetisation of the company’s existing US$2.2 billion of UK tax allowances.

The transaction is expected to complete around the end of the third quarter of 2019 subject to UK Oil and Gas Authority approval.

“The acquisition of CNSL is a significant step forward in the long term development of Ithaca Energy and underlines our belief in the North Sea, particular in the UK Central North Sea where the enlarged business will own a range of interests in a number of key producing assets,” said Ithaca Energy CEO Les Thomas.

Delek Group CEO Asi Bartfeld added: “The acquisition is a key part of the Delek Group’s strategic focus on building a world class exploration and production business. Acquiring CNSL accelerates implementation of that strategy and further strengthens the group’s oil and gas business.”