Ithaca Energy, a North Sea oil and gas operator and producer, has put the wheels in motion to acquire a non-operated stake from Shell UK, a subsidiary of the UK-headquartered energy giant Shell, in a gas discovery located West of Shetland, about 175 kilometers northwest of the Shetland Isles.
Thanks to a farm-in agreement with the European oil and gas major, Ithaca will get its hands on a 50% working interest in licenses P2629 and P2630 in the West of Shetland basin, containing the Tobermory discovery, situated in UK waters of the North Atlantic.
Yaniv Friedman , Ithaca’s Executive Chairman, commented: “We are delighted to announce the farm-in to the Tobermory discovery and to continue our strategic partnership with Shell UK in the area.
“The West of Shetland represents a key basin for the group’s long-term growth, with the ongoing development of the Rosebank field and the continued progression of the Cambo and Tornado discoveries towards final investment decision.”
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Once the farm-in is complete, Shell will continue to hold a 50% stake in this discovery and act as the license operator. Ithaca believes that the farm-in, together with its existing 50/50 joint venture partnership with the UK-headquartered giant in the Tornado discovery, further strengthens its position as a strategic partner in the area.
As a result, the company claims that the strategic farm-in to the Tobermory gas discovery builds upon its West of Shetland investment strategy and positions it as a significant player in a key gas hub in the area, supporting Britain’s energy security.
Friedman underlined: “Our investment in the West of Shetland basin is critical not only to the UK’s energy security strategy, but also in supporting thousands of highly skilled jobs and our world-class supply chain and providing significant gross value add to the UK economy.”
This acquisition move comes two months after Ithaca Energy unveiled pricing of its senior notes offering and the extension of its reserves based lending (RBL) facility intended to fund the firm’s purchase of an additional interest in a UK gas field.