Delek buys Siccar Point to expand North Sea production
2 min readDelek Group Ltd. (TASE:DLEKG), controlled by Yitzhak Tshuva, has claimed that its North Sea oil and electrical power fuel operator device Ithaca Energy has signed an arrangement to invest in Siccar Stage Vitality. Ithaca will obtain all the shares in Siccar Point Energy, which owns oil and gasoline creation belongings – the Mariner and Schiehallion fields – and a 30% stake in the demonstrated Cambo and Rosebank professional discoveries in the British isles waters of the North Sea.




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Ithaca claimed that the acquisition is section of its preparations for an IPO through 2022 aimed at rising its offshore generation and guaranteeing extended-term reserves.

Ithaca will shell out $1.1 billion for Siccar Stage Power which include the firm’s $200 million debt to bondholders, which is because of to be repaid in March 2026, while the bondholders will be entitled to immediate repayment if they choose adhering to the transfer of ownership.

Ithaca will finance the remaining $900 million by means of its present credit rating line from RBL, income accrued by Siccar Stage due to the fact the begin of 2022 and its own cash reserves. Ithaca estimates that based mostly on the recent price of output and existing profits and forecasts for the costs of oil and gas, it will be capable to repay credit history prolonged by RBL to finance the offer within significantly less than 12 months from closing the acquisition. Below the phrases of the deal, Ithaca will be entitled to all money gained by Siccar Point considering the fact that the get started of 2022.

The offer also incorporates up to $300 million for the declared discoveries at Rosebank and Cambo, subject matter to the demanded expense selection and regulatory approvals, for which an added $60 million payment is contingent, and whicvh also depends on potential oil price ranges.

Delek Group said that the deal will raise Ithaca’s day by day generation capability from 8,000-9,500 day-to-day barrels of oil to 75,000-85,000.

Delek extra that the Cambo and Rosebank discoveries are amid the premier North Sea offshore oil fields but to be produced, and there enhancement is now regarded of wonderful value by the British governing administration as component of its endeavours to develop domestic vitality assets and make certain energy independence in the wake of the the latest Russian invasion of Ukraine.

Published by Globes, Israel enterprise news – en.globes.co.il – on April 8, 2022.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.


