Harbour Energy expands North Sea footprint with $170 million dollar Waldorf deal and job cuts follow

Harbour Energy has strengthened its North Sea operations through a $170 million dollar acquisition of key assets from Waldorf Energy Partners and Waldorf Production, shortly after the company announced it would consult on approximately 100 job losses within its UK workforce.

The transaction brings Harbour a significant uplift in production capacity, adding around 20000 barrels of oil each day and granting access to an estimated 35 million barrels of reserves still to be extracted. As part of the deal, Harbour increases its existing stake in the Catcher field from 50 per cent to 90 per cent and secures a 29.5 per cent holding in the Kraken field. The company noted that the acquisition would support its competitiveness and long-term resilience amid ongoing fiscal and regulatory challenges in the region.

Scott Barr, managing director of Harbour’s UK division, described the agreement as essential for the firm’s ongoing strategy in the North Sea. He emphasised the benefit of stabilising the Catcher joint venture partnership while delivering immediate cashflow advantages and improving the outlook for both the business and the workforce it supports. The deal also addresses funding and decommissioning obligations for multiple stakeholders in the basin.

Harbour Energy, which listed on the London Stock Exchange in 2021 following the merger of Premier Oil and Chrysaor, initially concentrated on the UK market. It has since diversified substantially, most notably with an 11.2 billion dollar purchase of assets across South America, Mexico, Norway, and Africa from Wintershall Dea last year.

The Waldorf acquisition brings with it a valuable pool of tax losses, offering Harbour relief on its UK tax liabilities. Approximately 350 million dollars held for Waldorf’s decommissioning duties will also be released. The deal is anticipated to complete formally next year, subject to regulatory approval and the resolution of outstanding creditor claims against Waldorf subsidiaries.

Waldorf, headquartered in Aberdeen, entered administration in June last year after a missed bond payment. A proposed restructuring was rejected in the High Court, increasing uncertainty for creditors such as Capricorn Energy, which was owed 30 million dollars from previous asset sales. Capricorn has supported Harbour’s purchase and will accept a payment between 4 million and 5 million dollars as a compromise on its unsecured claim against Waldorf.