North Sea operator and Cambo owner Ithaca Energy nearing listing in London

Ithaca Combo

North Sea operator and Cambo owner Ithaca Energy nearing listing in London

Ithaca Energy is putting the final touches on proposals for an initial public offering (IPO) on the London Stock Exchange. The North Sea exploration and production company intends to publish a registration document, required for admittance to the market.

It plans to apply for admission of its ordinary shared to the premium listing segment of the Official List of the FCA, and to trading on the main market for listed securities of the LSE. According to recent reports, the IPO could raise as much as $1 billion.

Ithaca has been advised throughout the process by Pinsent Masons’ energy and corporate specialists, led by Glasgow-based Global Head of Oil and Gas Rosalie Chadwick.

Delek Group, Ithaca’s parent firm, announced in May that the operator would make its IPO in London “as soon as possible”. It followed a period of rampant growth for the firm, with high-profile deals for Marubeni, Summit Exploration and Siccar Point Energy.

Those transactions gave the group stakes in six of the top ten largest oil and gas fields in the UKCS, including Cambo and Rosebank. Alan Bruce, chief executive of Ithaca, said: “With the opportunities we have ahead of us, there has never been a more exciting time to be leading Ithaca Energy. “Our mission is to help meet the energy needs of the UK while operating in a sustainable manner. Our goal is to maximise value through the safe, efficient and responsible development and production of our assets. Our people are core to everything we do and their safety is my number one priority. I would like to thank them all for their continued hard work and ongoing commitment to the business.”

As of the end of June, Ithaca had proven reserves of 244 million barrels of oil equivalent (mmboe), and aggregate best estimate contingent resources of 302 mmboe. The company believes it has sufficient development opportunities to enable production to be increased to over 100 thousand barrels of oil a day (kboe/d) in the medium-term.

Ithaca’s portfolio consists of 28 producing field interests in the UKCS, of which it is the operator of eight fields – those could for the majority of its 2P reserves and 2C resources.

Idan Wallace, CEO of Delek, said: “Delek has invested a large amount of capital in Ithaca Energy since we acquired it in 2017, delivering significant value for our shareholders. “A London listing is the natural next step, allowing Ithaca Energy to flourish as an independent company with its own capital allocation policy and the potential to generate substantial value for all its shareholders. I am proud of the work the Ithaca Energy team has done and Delek looks forward to supporting Ithaca Energy as a long-term shareholder.”

Ithaca’s ambition is to have one of the lest emitting portfolios in the UK North Sea, and it has set a goal of reducing its combined Scope 1 and Scope 2 CO2 emissions from operated assets by 25%, based on 2019 levels, by 2025.

That is well ahead of the ambition laid out in the landmark North Sea Transition Deal (NSTD). In the long term, Ithaca is also committed to achieving net zero by 2040 on a net equity basis, 10 years ahead of NSTD commitments. The group has also emphasised the role it plays in UK energy security, a major priority for Westminster following Russia’s attack on Ukraine.

Ithaca said it “intends to utilise its significant reserves and operational capabilities” to shore up domestic energy supply from the UKCS.

That includes the development of the controversial Cambo scheme, one of the largest pre-FID projects in the UKCS. It is one of five oil and gas projects highlighted for accelerated progress in the UK Government’s recently announced Growth Plan 2022.

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