To bolster its presence in the North Sea, Ithaca Energy has announced the acquisition of Japan Petroleum Exploration Co., Ltd.’s (JAPEX) UK subsidiary, JAPEX UK E&P Ltd. (JUK), for an enterprise value of $193 million.
Transaction Details
The acquisition encompasses JUK’s 15% working interest in the BP-operated Seagull oil and gas field. Upon completion, Ithaca Energy’s stake in Seagull will increase from 35% to 50%, aligning it with BP’s share as the field operator. Additionally, Ithaca will assume approximately $215 million in JUK’s tax losses and about $105 million in losses from UK energy profit levies. The final purchase price is anticipated to be around $140 million, with the transaction expected to close by June 30, 2025, pending regulatory approvals.
About Ithaca Energy
Ithaca Energy is a leading independent oil and gas operator in the UK Continental Shelf (UKCS), with a strong track record of material value creation. The company has built a diverse portfolio of operated and non-operated assets across the Northern and Central North Sea and West of Shetland. In October 2024, Ithaca completed a £754 million all-share acquisition of Eni’s UK oil and gas assets, positioning it as one of the largest independent energy companies in the North Sea
About JAPEX
Japan Petroleum Exploration Co., Ltd. (JAPEX) is a Tokyo-based company established in 1955, with a mission to contribute to society through the stable supply of energy. JAPEX is involved in the exploration, development, production, and sale of crude oil and natural gas, both domestically in regions like Hokkaido, Akita, and Niigata, and internationally in countries such as Canada, Indonesia, and Libya. The company’s decision to divest its UK assets aligns with a broader trend of exits from the North Sea, driven by uncertainties surrounding government tax policies.
Strategic Implications
This acquisition underscores Ithaca Energy’s commitment to expanding its footprint in the North Sea, aiming to become one of the leading independent energy companies in the region. By increasing its stake in the Seagull field, Ithaca enhances its production capabilities and strengthens its position in the UKCS. For JAPEX, the divestment allows the company to streamline its portfolio amid evolving market conditions and regulatory landscapes.