Ithaca Energy Buys Eni UK Assets for $938 Million

Ithaca Energy, the North Sea operating arm of Delek Group, has finalized a binding agreement to acquire all of Italian energy giant Eni's oil and gas production assets in the UK. The deal, valued at $938 million (approximately £750 million), will be executed through a share exchange. Eni will receive shares in the merged entity, representing 37.3% to 38.7% of the company, thereby diluting Delek Group's stake from about 89.6% to approximately 52%. Delek Group, controlled by Yitzhak Tshuva, will retain control of Ithaca Energy, alongside a leading international partner.

This agreement solidifies earlier negotiations and exclusivity periods reported at the beginning of the year. The combined company aims to distribute $500 million in annual dividends. Ithaca Energy stated that the merger will significantly expand its operations, positioning it as one of the largest independent oil and gas producers on the UK Continental Shelf (UKCS).

The merged entity's production is projected to exceed 100,000 barrels of oil equivalent per day. Proven oil and gas reserves are expected to increase by approximately 100 million barrels of oil equivalent, reaching about 660 million barrels of oil equivalent. The acquired assets include the Cygnus, Elgin/Franklin, and J-Area fields, which will diversify Ithaca Energy's portfolio.