ITHACA Energy has ramped up its presence in the North Sea after clinching deals which give it full control of operating licences in the Greater Stella Area (GSA).
Aberdeen-based Ithaca has acquired Petrofac’s 20 per cent holding in the GSA development, as well as its 24.8 per cent interest in the FPF1 floating production facility, in a transaction worth up to $292 million.
Petrofac will book a one-off impairment charge of $55m on the deal.
At the same time, Ithaca announced it has acquired Dyas UK’s 25 per cent interest in the development, including Dyas’ interest in the area’s non-producing Jacky and Athena licences
As a result of the deals, Ithaca now has full ownership of the area’s Stella, Harrier and Hurricane fields, as well as 100% control over the floating production facility.
Ithaca, now part of Israel’s Delek Group, declared that the acquisition materially increases its production and reserves base, while giving it full control over the long-term development of the GSA production facility used on the production hub.
It forecasts that production will now increase by around 50 per cent to 22,000 barrels of oil equivalent per day, with unit operating costs expected to reduce next year to $18 million (boepd).
The acquisitions make good on the growth ambitions highlighted by Ithaca earlier this year, when it said its new Israeli owner was keen to increase its exposure to the North Sea.
Petrofac boss Ayman Asfari said: “This disposal marks a further milestone in our journey back to a capital-light business and, along with recently-agreed transactions in Mexico and Tunisia, marks the significant progress we are making on our stated strategy.”
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules here