Breaking: 500 Staff to Transfer to Ithaca Energy as Delek Group Buys Chevron North Sea Assets in £1.5 Billion Deal

Delek Group Buys Chevron North Sea Assets in £1.5 Billion Deal

The deal which has been anticipated for the last week will see 10 additional fields added to the firm’s portfolio.

U.S. oil major Chevron Corp kicked off the sale of its central North Sea oil and gas fields Alba, Alder, Captain, Elgin/Franklin, Erskine and Jade as well as the Britannia platform and its satellites last July, with the help of U.S. investment bank Morgan Stanley.

The acquisition was agreed for just over £1.5 billion through Delek’s wholly-owned subsidiary Ithaca Energy, headquartered in Aberdeen.

200 offshore workers and 300 onshore will transfer over to Ithaca Energy from Chevron

The deal equates to a 150% increase in the proven and probable reserves for Ithaca and a 300% increase in forecast 2019 production.

The Israeli company beat competitors including a consortium formed by Britain’s Premier Oil and U.S. private equity fund Apollo Global Management and also British petrochemical maker Ineos Group, the sources said. It hired JP Morgan and BNP Paribas as advisors to the acquisition.

Les Thomas, Ithaca Energy CEO, said:”The acquisition of CNSL is a significant step forward in the long term development of Ithaca Energy and underlines our belief in the North Sea, particular in the UK Central North Sea where the enlarged business will own a range of interests in a number of key producing assets.

“We are very pleased to be acquiring a high quality portfolio of assets and experienced operational organisation that fits well with our existing business. Like our current portfolio, the production and reserves base is heavily weighted towards operated asset positions, which provides us with the ability to actively prioritise and unlock the full potential of the business.

“We are excited about establishing an enlarged organisation with a dynamic and innovative culture based on a continued commitment to safe and efficient operations. We look forward to working with our new colleagues to develop and grow the business and continue engaging with our contractors and the broader supply chain to deliver a successful future.”

The acquisition marks another step for Delek towards its expected public listing,

Asi Bartfeld, Delek Group CEO, added: “The acquisition is a key part of the Delek Group’s strategic focus on building a world class E&P business.

“Acquiring CNSL accelerates implementation of that strategy and further strengthens the group’s oil and gas business.

“We see exciting growth opportunities in the North Sea and are looking forward to working with Ithaca to deliver upon our value and growth targets.”