Ithaca buys Chevron’s North Sea assets for US$2 billion

Ithaca Energy said the purchase of Chevron North Sea Limited for the equivalent of 1.8 billion euros will complement its business. (AFP pic)

LONDON: Israeli-owned company Ithaca Energy on Thursday agreed to buy Chevron’s North Sea assets for US$2 billion, as the latest US energy major offloaded non-core activities in the area.

Ithaca, part of Tel Aviv-listed Delek Group, announced in a statement on the London stock exchange that the purchase of Chevron North Sea Limited for the equivalent of 1.8 billion euros will complement its business.

“The acquisition … is a significant step forward in the long term development of Ithaca Energy and underlines our belief in the North Sea,” said Ithaca boss Les Thomas.

“We are very pleased to be acquiring a high-quality portfolio of assets and experienced operational organisation that fits well with our existing business.”

Delek chief executive Asi Bartfeld added the purchase “is a key part of the Delek Group’s strategic focus on building a world class exploration and production business”.

News of the Chevron divestment comes one month after British energy exploring minnow Chrysaor bought US giant ConocoPhillips’ North Sea oil and gas assets for US$2.7 billion.

“The deal continues the UK trend of smaller companies taking on assets from the majors,” said Kevin Swann, senior research analyst at consultancy Wood Mackenzie.

“Following hot on the heels of Chrysaor’s deal with ConocoPhillips, we’ve seen assets worth almost US$5 billion change hands in the last few months,” he added in a research note to clients.