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    Ithaca closes takeover of Siccar Point

Summary

The deal positions Ithaca as "a leading North Sea E&P company with significant production, material growth potential and a long-life cycle portfolio."

by: NGW

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Ithaca closes takeover of Siccar Point

Ithaca Energy announced on July 4 it had closed the acquisition of fellow UK North Sea player Siccar Point Energy, further consolidating its position in the mature basin.

The deal, first announced in early April, includes a $1.1bn upfront payment and multiple conditions payments that could net Siccar's shareholders an additional $360mn. It gives Ithaca interests in several large producers including the Schiehallion and Mariner fields, and also a 70% stake in the undeveloped Cambo oilfield west of the Shetlands.

Cambo's fate was thrown up in the air last year when Siccar's partner Shell announced its intention to withdraw from the project, predicting delays and citing weak economies. The field's development has been subject to an intensive campaign by environmentalists.

Ithaca's acquisition of Siccar comes after its March purchase of another local player Summit Corp. for $224mn in March. 

"Completion of the acquisition of Siccar Point marks a key milestone in establishing Ithaca as a leading North Sea E&P company with significant production, material growth potential and a long-life cycle portfolio," Ithaca chairman Gilad Myerson said in a statement.