The Italian oil and gas company Eni has completed the combination of its upstream oil and gas assets in the United Kingdom with Ithaca Energy. The £754m (€900m) merger deal, however, excludes Eni’s East Irish Sea assets and CCUS activities.
Ithaca Energy completed a 754 million pound ($993 million) deal to buy nearly all of Eni’s UK oil and gas producing assets, it said on Thursday, an all-share transaction to create one of the biggest independent energy companies in the North Sea.
The North Sea oil and gas firm has reported a fall in profits and revenue for the six months to June 30, hit by impairment charges, lower production and a slump in oil and gas prices.
Eni SPA is combining its upstream oil and gas business in the United Kingdom with Ithaca Energy PLC, in a transaction expected to potentially give the Italian energy major a leading position in the UK continental shelf (UKCS).
However, the deal excludes Eni’s East Irish Sea assets and carbon capture and storage activities.
Ithaca Energy has been given a four-week exclusivity period by Italy’s Eni to make an offer for UK exploration and production assets that could expand its output massively, the London-listed company said on Wednesday.