By Mark Williamson
THE oil firm that plans to develop the controversial Cambo field off Shetland, Ithaca Energy, appears to have won strong backing from City investors as it prepares to float on the London Stock Exchange.
It is understood Ithaca’s Israeli owner has secured enough interest from potential investors to be able to fulfil its plan to sell at least 10 per cent of the shares in the firm in an initial public offering.
The IPO is set to value Ithaca at up to $3.6 billion (£3.1bn) according to people close to the process.
The flotation will allow Delek to recoup some of the investment made in Ithaca, which it acquired in a billion pound deal in 2017.
Delek showed confidence in the long-term potential of the North Sea in April by supporting Ithaca to acquire a majority stake in the 170 million barrel Cambo field, through the $1.1bn takeover of Siccar Point Energy.
Siccar Point provoked outrage among environmentalists by developing plans to develop Cambo with Shell. First Minister Nicola Sturgeon said the development should not be approved by the UK Government.
However, Ithaca appears confident that it will win clearance to develop Cambo amid the official drive to reduce the UK’s reliance on imports following the surge in oil and gas prices fuelled by the war in Ukraine.
The price rises have provided a big boost to the profitability of North Sea firms.
Cambo could benefit from the investment allowance the UK Government introduced in May alongside the windfall tax on the profits made by North Sea oil and gas firms.
Ithaca said recently it expects to decide early next year whether to develop Cambo.
Shell dropped plans for the Cambo development in December citing concerns about its economics and the potential for delays.
Ithaca shares are set to be priced at 250p to 310p in the IPO. Trading in them is expected to start on November 9.
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