The deal adds a further ten oil and gasfields to Ithaca’s portfolio, driving up its proven and probable reserves by 150 per cent and resulting in a 300 per cent increase in its predicted output for the current year. “We are very pleased to be acquiring a high quality portfolio of assets and experienced operational organisation that fits well with our existing business. Meanwhile, Delek remains in talks with investors regarding its plans to float Ithaca on the London Stock Exchange. It takes over as operator of four of the 10 fields – Alba, Alder, Captain and Erskine. Keep up to date with our business news and upcoming events. © Energy Voice 2020. It represents the latest North Sea retreat by a US energy group, after ConocoPhillips offloaded its UK oil and gas business to Chrysaor Holdings last month in a deal worth almost $2.7bn. Analysts at Wood Mackenzie, the Edinburgh-based energy consultancy, said it had recently identified the UK as one of nine countries considered “peripheral” to CNSL due to lack of scale and growth potential, as the group looks to hit its disposal targets. North American oil and gas firms Apache Corporation, CNR International, Suncor and ExxonMobil continue to own significant UK portfolios. Contractor in hot water for ‘mistakenly’ underpaying workers at giant Scottish wind project. This transaction will bring Chevron within a whisker of hitting the low end of its target range over a year early. California-headquartered Chevron retained its non-operated 19.4% stake in the giant Clair field, west of Shetland. Ithaca chief executive Les Thomas said: “The acquisition 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. ©JPIMedia Publishing Ltd. All rights reserved. Read our recent archived releases, quarterly results, annual reports, presentations, publications and financial statements. Ithaca forecasts that it will deliver pro-forma 2019 production of approximately 80,000 barrels of oil equivalent per day, at an operating cost of around $17 per barrel of oil equivalent. Israeli firm Delek Group’s Aberdeen-based subsidiary, Ithaca Energy, has completed the acquisition of Chevron’s UK North Sea business. Israeli firm Delek Group's Aberdeen-based subsidiary, Ithaca Energy, has completed the acquisition of Chevron’s UK North Sea business. The £1.6 billion deal, first announced in May, hands Ithaca stakes in 10 producing fields and boosts its production by about 300% to 80,000 barrels of oil per day. They said: “Chevron has a disposal target of $5bn to $10bn between 2018 and 2020. The transaction has an effective date of 1 January 2019 and is expected to complete around the end of the third quarter of 2019, subject to regulatory approval. Its understood Ithaca is now using Chevron’s former base at Hill of Rubislaw in Aberdeen. The UK-focused oil and gas operator, which is owned by Israel’s Delek Group, has acquired US major Chevron’s North Sea business (CNSL) for $2 billion (£1.6bn). The transaction between Delek and Chevron continues the trend of North American majors selling large packages of UK assets. “With this exciting backdrop, we look forward to contributing to the industry’s objective of maximising economic recovery for the UK North Sea over the years to come.”. Delek said Ithaca had signed a five-year deal with BP for the distribution and marketing of oil and gas from the newly-acquired fields. Ithaca Energy is one of the largest independent exploration and production companies in the UK with substantial production assets in the North Sea. Canadian firm Nexen, which owned several North Sea fields, was acquired by China’s Cnooc in 2013. Upon completion, the group’s enlarged portfolio will encompass 18 producing fields. Les Thomas, Ithaca’s chief executive, said about 500 Chevron employees, including 200 offshore, would transfer to Ithaca, with no redundancies expected. Around 500 employees will transfer to Ithaca as part of the deal, of which an estimated 200 work offshore on the operated assets. “The acquisition has established Ithaca Energy as a leading UK North Sea oil and gas company with a strong outlook and the opportunity set from which to deliver material value to the Delek Group and enhance its presence in the global energy markets.”. “Like our current portfolio, the production and reserves base is heavily weighted towards operated asset positions, which provides us with the ability to actively prioritise and unlock the full potential of the business.”, Asi Bartfeld, Delek Group chief executive, added: “We see exciting growth opportunities in the North Sea and are looking forward to working with Ithaca to deliver upon our value and growth targets.”, This website and its associated newspaper are members of Independent Press Standards Organisation (IPSO). Israeli firm Delek Group’s Aberdeen-based subsidiary, Ithaca Energy, has completed the acquisition of Chevron’s UK North Sea business. The agreement includes CNSL’s majority stakes in the Captain and Alder fields, and its 50 per cent shares in the Erskine and Enochdhu assets. Mr Thomas said today: “Completion of the Chevron North Sea acquisition marks a major milestone in the long term development of Ithaca Energy. Royal Mail to recruit 1,400 season staff in Scotland over Christmas, Construction work starts on two new Edinburgh schools. Read also: Ithaca to inject small company ethos into Chevron North Sea, CEO says. “Chevron will be left with a 19 per cent stake in the Clair field once the deal closes and a complete exit from the UK is looking increasingly likely.”. “We have a highly experienced organisation that is well set-up to deliver upon our investment plans and secure the future success of the business. Ithaca to inject small company ethos into Chevron North Sea, CEO says, Aberdeen engineering firm believed to have laid off quarter of workforce, Aberdeen-based energy services group awarded multi-million pound North Sea duty holder contract, Report highlights ‘very worrying signs’ for North Sea employment, Leading industry body calls for Ofgem to ‘deliver, not delay, net zero’, Deal with Li Ka-shing gives Canadian oil giant a Biden hedge, Prosafe wins $13.6m contact with ConocoPhillips. Investors It also comprises stakes in Alba, Britannia, Brodger, Callanish, Elgin/Franklin and Jade. Business Ithaca buys Chevron North Sea in $2 billion oil deal Ithaca Energy has swooped on a North Sea rival in a multi-billion-dollar deal set to quadruple its production forecast in 2019. “The significantly enlarged operations provide an excellent platform from which to maximise the value of our high-quality asset portfolio and establishes the company as a leading UK North Sea oil and gas producer. All Rights Reserved. Delek chief executive Asi Bartfeld said: “With completion of the acquisition, we are delighted to have made a significant step towards our strategic objective of building the Delek Group’s position as a world class E&P business. ConocoPhillips recently sold its UK division to private-equity backed Chrysaor and Marathon Oil has divested its North Sea business to RockRose Energy. Ithaca said the transaction — paid for using bank loans and a debt finance offering — established it as the second-largest independent oil and gas producer in the UK North Sea. Its total asset sale proceeds since the beginning of 2018 are $2.3bn.