Israel’s Delek Group is expanding its presence in the UK North Sea with the acquisition of Siccar Point Energy, a private joint-stock company behind the controversial Cambo oil field, in a nearly $ 1.5 billion deal.
Delek will buy Siccar Point through its North Sea manufacturing branch in the UK, Ithaca Energy, a company that was previously listed in Toronto and London, but the Israeli group took over privacy in 2017.
Ithaca will initially pay $ 1.1 billion in advance for Siccar Point, which is supported by private equity groups Blackstone and Bluewater, but the deal will include other payments that could reach a maximum of $ 360 million.
Siccar Point was one of a new type of private joint stock company that stirred the British North Sea after falling oil prices in 2014, taking funds from major oil and withdrawing utility companies. In 2016, he bought assets in the North Sea of the Austrian energy group OMV.
However, Siccar Point has attracted unwanted headlines over the past year as proponents of climate campaigns have caught his plea to British regulators to continue with Cambo, a large new oil field northwest of the Shetland Islands. They argued that the country should not allow any new oil and gas projects if it is serious about achieving the goal of reducing net zero emissions by 2050.
The Cambo project was paused in December when Siccar Point’s junior partner in the scheme, Shell, said he would retire for economic reasons, although the BBC has since reported that Shell is reconsidering its position. The UK government is urging companies to pull new barrels out of the North Sea as they wish strengthen your domestic energy reserves after the Russian invasion of Ukraine.
Ithaca said the agreement would double its recoverable reserves and support production of at least 80,000-90,000 barrels of oil equivalent per day for the next decade. Siccar Point also has a stake in the Rosebank field managed by Equinor, another major undeveloped project in the North Sea that analysts expect will get the green light in the next few years.
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