Ithaca Raises Oil and Gas Output Guidance After Buying Eni’s UK Assets

Ithaca Energy, the largest oil and gas resource holder in the UK North Sea following the acquisition of Eni’s UK business, expects its full-year 2025 production to materially increase after it completed the Eni deal.

Ithaca Energy, which is now the second-largest independent producer in the UK Continental Shelf after Harbour Energy, expects full-year 2025 production in the range of 105,000-115,000 boe/d, reflecting a full year of contributions from Eni’s UK assets, the company said on Wednesday in its 2024 results release.

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Last year, Eni reached an agreement with Ithaca Energy to combine substantially all of its upstream assets in the UK, excluding East Irish Sea assets and CCUS activities, in “a strategic move to significantly strengthen its presence on the UK Continental Shelf.”

With Eni’s oil and gas assets, Ithaca will now boost its oil and gas production to 105,000-115,000 boe/d this year, up from just over 80,000 boe/d before the transaction.

Ithaca is further raising its resource base after announcing earlier this week that it had signed a deal to buy JAPEX UK E&P Limited from Japan Petroleum Exploration Co. Ltd for an enterprise value of US$193 million based on an effective date of 1 January 2024. JAPEX holds a 15% working interest in the Seagull oil field in the UK North Sea. The transaction, which is subject to the satisfaction of certain conditions, including regulatory approval, will increase Ithaca Energy’s working interest in Seagull from 35% to 50%, equaling BP’s interest as the field operator.

Beyond 2025, Ithaca expects to sustain production above 100,000 boe/d in the medium term reflecting the full benefit of investment in the Captain EOR Phase II project, first production from the its share of the Rosebank development operated by Equinor, and infill drilling programs at Cygnus, Elgin Franklin, and the J Area in the UK North Sea.

By Tsvetana Paraskova for Oilprice.com

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