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    North Sea's Ithaca to Spin Off Facilities


Ithaca is to form a joint venture with a global investment firm to manage the assets.

by: Joseph Murphy

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North Sea's Ithaca to Spin Off Facilities

North Sea-focused Ithaca Energy has signed a letter of intent with an unidentified global investment firm to set up a joint venture to manage its infrastructure assets, its Israeli parent Delek Group said February 10.

The venture will be 40%-owned by Ithaca and 60% by the investment firm, Delek said. Under a sale and charter agreement, it will acquire Ithaca’s FPF-1 floating production facility, stationed at the Stella oil and gas field, and its 85%-owned floating production, storage and offloading vessel at the Captain oilfield. It will pay somewhere between $875mn and $1.05bn, depending on production levels, reserves and other factors.

The company will be able to make decisions on “material matters, budgetary issues, expenses, distributions and financial matters,’ concerning the assets, Delek said. The aim is to add additional assets to the venture, in order to maximise and create value, including transferring some held by the global investment firm.