February 23, 2024

Ithaca Energy has closed its acquisition of the remaining 30 percent stake in Cambo from Shell U.K. Limited, bringing Ithaca Energy’s stake in Cambo to 100 percent.

The acquisition will provide Ithaca Energy with control over the progression of the future development of Cambo, the company said in a recent news release. The Cambo field is the second largest undeveloped oil and gas discovery in the United Kingdom (UK) North Sea, located in the West of Shetland region. The transaction value was not disclosed.

Ithaca Energy said the acquisition has minimal near-term cost exposure, with the consideration payable on either the first production of oil or the receipt of proceeds of any subsequent sale of a working interest in Cambo by Ithaca Energy; whichever comes first. The acquisition, announced in September, is subject to the company proceeding with a final investment decision and/or the North Sea Transition Authority providing development consent, according to the release.

“We are pleased to announce the completion of this acquisition, taking our ownership of Cambo to 100 percent”, Ithaca Energy CEO Alan Bruce said in the release. “Following completion, we are now in a stronger position to engage with potential farm-in partners to enable the future progression of the project to Final Investment Decision. As the second largest undeveloped oil and gas discovery in the UK, we believe that Cambo has an important role to play in providing critical energy security to the UK, while reducing the UK’s overall emissions intensity”.

The Cambo development provides Ithaca Energy with long-term production growth at a low expected unit operating cost per barrel, the company said, adding that with its modern, energy efficient design and potential for electrification, Cambo has the potential to be one of the lowest-emission intensity assets in the North Sea.

The field is expected to produce at less than half the carbon dioxide intensity than the average UK field, enabled by the floating production, storage and offloading (FPSO) design that includes features such as being fully electrification-ready, zero routine flaring, and the Sevan FPSO hull design which reduces power demand, Ithaca said.

In November, Ithaca Energy completed its acquisition of the remaining 40 percent stake in the Fotla Discovery and exploration licenses P.213 Area C, P.345 Area A, and P.2536 from Spirit Energy, bringing the company’s working interest in the Fotla Discovery to 100 percent.

The Fotla Discovery, operated by Ithaca Energy, is located in Block 22/1b of the UK North Sea in 431 feet of water, approximately 6.2 miles (10 kilometers) southwest of the Ithaca Energy-operated Alba field. The company is currently evaluating development plans for the asset, and first production is targeted for 2026. The conceptual field development plan consists of a subsea tieback to existing infrastructure, according to an earlier news release. The transaction value was not disclosed.

“We are delighted to announce the completion of this acquisition which provides Ithaca Energy with full control over the pre-final investment decision work program and timing of project sanction”, Bruce said. “The deal strengthens our high-quality development portfolio and demonstrates further delivery of our clearly articulated strategy”.

Ithaca Energy is a UK-based independent exploration and production company focused on the UK North Sea. In recent years, the company has been focused on growing its portfolio of assets through both organic investment programs and acquisitions. Ithaca Energy is one of the largest independent oil and gas companies in the United Kingdom Continental Shelf (UKCS), ranking second by resources, it said. The company has stakes in six of the 10 largest fields in the UKCS and two of the UKCS’s largest pre-development fields.

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