Harbour Energy has entered into an agreement to acquire LLOG Exploration Company for $3.2 billion, marking its entry into the deepwater U.S. Gulf of America and strengthening its global offshore portfolio.
The deal, which includes $2.7 billion in cash and $0.5 billion in Harbour voting ordinary shares, establishes a new core business unit for Harbour alongside its existing operations in Norway, the UK, Argentina and Mexico. Completion is expected in late first-quarter 2026, subject to customary regulatory approvals.
Harbour said the acquisition would add oil-weighted offshore production, extend reserve life and improve margins, while being free cash flow per share accretive from 2027.
The key assets acquired with LLOG’s portfolio include operated deepwater developments in the Mississippi Canyon and Keathley Canyon areas of the Gulf of America, with production of 34,000 barrels of oil equivalent per day and a 2P reserves life of 22 years. Production from the assets is expected to approximately double by 2028.
Under the terms of the agreement, Harbour will finance the cash portion through a $1 billion bridge facility, a $1 billion term loan and existing liquidity. LLOG Holdings LLC will receive newly issued Harbour shares valued at $0.5 billion and will own around 11% of Harbour’s voting shares on completion, subject to adjustments from an ongoing share buyback programme.
Harbour said the acquisition supports its investment-grade balance sheet profile, with increased scale, reserves and free cash flow, and positions the company for long-term shareholder returns.
LLOG will become Harbour’s Gulf of America business unit following completion, retaining the LLOG name.
“With LLOG, we found the right combination of high-quality assets and a talented team, providing a strong strategic and cultural fit with our company.
“The oil-weighted, deepwater LLOG portfolio enhances our production profile, provides significant operational control, extends reserve life and improves our margin,” said Linda Z Cook, CEO Harbour.
“This transaction also builds on the recently announced agreements to acquire Waldorf in the UK and divest assets in Indonesia, materially enhancing our free cash flow outlook. Consistent with our practice following previous acquisitions, our priorities following completion of the transaction will be the safe integration of assets and people, ensuring a robust and resilient portfolio,” added Alexander Krane, CFO of Harbour.