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Ithaca Energy PLC on Tuesday said it has struck a $193 million deal to acquire Japex UK E&P Ltd, boosting its stake in the Seagull oil field to 50%. Ithaca is acquiring Japex UK from Japan Petroleum Exploration Co Ltd. Japex UK holds a 15% stake in Seagull. The deal ups Ithaca’s holding to 50% from 35%, meaning it will own the same interest as BP PLC. Japex UK is Japan Petroleum’s unit focused on the ‘exploration, development and production of crude oil and natural gas in the UK North Sea’. ‘The Seagull oil field, located in the UK Central North Sea, with over 300 million boe in place, represents a high margin producing field, developed as a subsea tie back to the BP-operated central processing facility of the Eastern Trough Area project. Production started in November 2023 from the J1 well. J2 and J3 wells are now online with the fourth well, J4, due onstream in H2 2025. The field is expected to remain in production until the mid-2030s,’ Ithaca says. The deal has an enterprise value of $193 million. It is subject to ‘customary purchase price adjustments’ equating to a $140 million payment at completion, assuming a June 30 closing date. The deal also includes Japex UK’s ‘material tax losses’ of around $215 million stemming from ring fence corporation tax and supplementary charge tax, as well as around $105 million in energy profit levy as at the start of January last year. Ithaca Executive Chair Yaniv Friedman said: ‘Today’s announcement regarding the acquisition of JUK shows Ithaca Energy’s growth strategy in action with a highly accretive, easily digestible and synergistic deal that will add incremental production for the group, in a well-understood, high-value field.’ Ithaca shares rose 2.6% to 140.60 pence each in London on Tuesday morning. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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