Eni, Ithaca to merge upstream assets in the UK

LONDON, April 23, 2024 – Eni has agreed to merge almost all of its UK upstream assets with those of local player Ithaca Energy, the Italian company said on Tuesday.

Ithaca Energy is a North Sea-focused independent upstream player with 522 million boe of reserves and resources. The company has interests in six of the 10 largest fields and the top two largest development fields on the UK Continental Shelf.

The deal will exclude Eni’s East Irish Sea assets as well as its CCUS activities.

At its completion in Q3 2024, Eni will hold a 38.5% of the new entity.

The combined Group will have 2024 production of more than 100,000 boepd, Eni said, highlighting potential organic growth to reach 150,000 boepd.

Eni CEO Claudio Descalzi hailed the agreement as an example of the company’s “Satellite Model.”

“It affords the opportunity to build scale, realising efficient upstream growth and maximising value under a dedicated and focused management structure supported by Eni resources and expertise,” Descalzi said.

“The combination with Ithaca represents an exciting opportunity for us to bring together complementary portfolios establishing a material position on the UKCS with significant growth and optimisation opportunities.”

Photo courtesy of Ithaca Energy.