Ithaca Energy targets M&A deals as Rosebank approval delayed

Ithaca Energy is actively monitoring merger and acquisition opportunities while it awaits regulatory approval for the Rosebank development and prepares for a final investment decision on the Cambo project. The London-based firm, which is majority-owned by Israel’s Delek Group and Italy’s Eni, stated that it continues to pursue deals in the UK Continental Shelf and internationally. This strategy aligns with its focused international expansion plans and comes as the company navigates a period of mixed financial results and significant project milestones.

The company’s interest in new acquisitions follows the announcement by supermajor BP that it intends to sell its North Sea business. BP has officially listed its intention to exit the region and dispose of its UK portfolio, which is valued at approximately £2.5 billion. Ithaca is considered one of the likely buyers in this potential transaction, particularly after earlier reports suggested it had been in discussions regarding BP’s UK assets. The firm has maintained a patient but active approach to these opportunities, aiming to strengthen its position in the energy sector without compromising its strategic focus.

In its half-year results, Ithaca reported pre-tax profits of $493.8 million, a slight decrease from the $513.4 million recorded in the same period of 2025. However, the company achieved a significant turnaround in its bottom line, reporting profits of $127 million for the period. This contrasts sharply with the £217.5 million loss reported for the first half of 2025. Production figures also improved, with the firm producing 128,000 barrels of oil equivalent per day, up from 124,000 boe/d in the previous year. These results allowed the company to reaffirm its full-year production guidance, reduce operating cost expectations, and increase its dividend outlook.

Executive chairman Yaniv Friedman attributed the positive performance to record quarterly production in the second quarter, safe operations, and disciplined capital allocation. He noted that the company has continued to execute its strategy by strengthening its balance sheet and extending its hedge position. Friedman emphasised the company’s focus on maximising long-term value creation and delivering sustainable returns for shareholders through organic growth opportunities across its portfolio.

The Rosebank development, the UK’s largest untapped oilfield, remains a central focus for Ithaca. The project is currently awaiting government sign-off for the second time, with reports suggesting the decision may be delayed until the autumn. The operator, Adura, has narrowed the expected first production window, anticipating initial output in the first half of next year. Production is expected to ramp up to plateau levels from summer 2027. Ithaca holds a 50% stake in the asset, with Adura holding the remaining share.

Meanwhile, the Cambo project has entered the value engineering and pre-execution phase, moving towards sanction in 2027. Ithaca had previously indicated it would make a final investment decision within the next 12 months. The company is also advancing the Tornado development, a tie-back to the Greater Laggan Area network. Following an 18-month licence extension, Ithaca is moving towards a final investment decision on Tornado, with first gas production planned for the fourth quarter of 2029. The firm holds a 50% stake in the Tornado licence, acquired through its 2022 takeover of Siccar Point Energy.