Italian oil giant Eni has completed the sale of its upstream assets in the UK, excluding East Irish Sea assets and CCUS activities, to Ithaca Energy, taking approximately 38.7% stake in the London-listed company.
The combination is funded through the issue to Eni UK of such number of new ordinary shares that represents approximately 38.7% of the enlarged issued share capital of Ithaca.
The agreement was first announced in April 2024, and the companies said at the time, the business combination will create a major independent oil and gas company present on the UK Continental Shelf (UKCS).
The combination reaffirms the commitment of Eni in the UK, where it is engaged across the entire energy value chain - oil & gas upstream, renewables, CCS projects, potential future development of magnetic fusion projects, the Italian company said.
By combining two complementary portfolios, the transaction consolidates Eni's upstream position in the country, where the company sees opportunities for value through growth and optimization.
The transaction again highlights the value of Eni’s distinctive satellite model and aligns with the previous successful upstream combinations that Eni has formed, including Vår Energi in Norway and Azule Energy in Angola.
The satellite model addresses the challenges and opportunities of energy markets, by creating focused and lean companies able to attract new capital to create value through operating and financial synergies and the acceleration of growth.
“Following the combination, Eni is a fully committed, long-term and supportive shareholder of Ithaca, that is now positioned as the largest resource holder in the UK North Sea with a diversified portfolio of production and development opportunities, that has the ability to underpin material long-term organic growth, delivering the oil and gas essential for energy security while supporting the UK’s decarbonization targets,” Eni said in a statement.
The transaction has been approved by the competent authorities and the relevant antitrust regulators.