Ithaca Energy Navigates Restructuring Amid North Sea Expansion

Ithaca Energy is undergoing a restructuring process following its acquisition of Eni's UK assets. This move is expected to lead to job cuts and a forecast of higher production levels. The company projects output to surpass 100,000 barrels of oil equivalent per day beyond 2025.

North Sea oil and gas giant, Ithaca Energy, announced the initiation of a restructuring process that may result in job reductions, following its recent acquisition of Eni's UK assets. The company aims to finalize the procedure by July 1, keeping the exact number of affected positions undisclosed.

Ithaca acquired nearly all of Eni's UK oil and gas producing assets last year in an all-stock agreement valued at approximately 754 million pounds ($975.8 million). This strategic acquisition positions Ithaca to become a leading independent energy player in the North Sea, allowing it to forecast a significant increase in production by 2025, with an expected output of 105,000 to 115,000 barrels of oil equivalent per day.

Despite a higher production level in 2024, Ithaca's profit post-tax saw a decline due to increased taxation. The company cites the energy profits levy as a major factor, with cash tax payments forecasted between $235 million and $265 million in 2025, driven largely by the profits levy.

(With inputs from agencies.)