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Eni merges its UK North Sea portfolio with Ithaca Energy in US$940m deal

The Italian oil and gas company Eni has announced the combination of most of its upstream assets in the United Kingdom with UK’s Ithaca Energy for about GBP754m (US$940m) in stock. The deal establishes a business combination agreement of Eni UK Business (excluding the East Irish Sea assets and carbon capture, utilization, and storage (CCUS) activities) with the existing Ithaca business to strengthen Eni’s presence on the UK Continental Shelf (UKCS) and create the second largest independent operator in the UKCS by production.

Ithaca is one of the largest independent oil and gas companies on the UKCS, with stakes in six of the ten largest fields and the top two largest development fields on the UKCS.

The business combination is expected to expand the Group’s operations and increase production capacity to over 100 kboe/day in 2024, with the potential to grow to 150 kboe/d by the early 2030s. The economic effective date for the combination is scheduled for 30 June 2024, with completion expected in the third quarter of 2024, subject to the satisfaction of certain regulatory and other customary conditions precedent.