Tobermory is located in licences P2629 and P2630.
Following completion of the transaction, Shell UK will retain a 50% interest in the licences and continue to act as the operator.
Ithaca Energy stated that the agreement aligns with its ongoing investment strategy in the West of Shetland region. The company added that the deal establishes it as a significant participant in an important gas hub in the area and contributes to the United Kingdom’s energy security.
Together with its existing 50/50 joint venture with Shell in the nearby Tornado discovery, this new agreement further strengthens Ithaca Energy’s presence in the region.
Yaniv Friedman, Executive Chairman of Ithaca Energy, commented: “We are delighted to announce the farm-in to the Tobermory discovery and to continue our strategic partnership with Shell UK in the area.
“The West of Shetland represents a key basin for the Group’s long-term growth, with the ongoing development of the Rosebank field and the continued progression of the Cambo and Tornado discoveries towards final investment decision.
“Our investment in the West of Shetland basin is critical not only to the UK’s Energy Security strategy but also in supporting thousands of highly skilled jobs and our world-class supply chain and providing significant gross value add to the UK economy.”
Ithaca Energy describes itself as one of the largest independent oil and gas operators on the UK Continental Shelf and ranks as the second-largest producer by volume.
Earlier this year, in March, Ithaca Energy signed a sale and purchase agreement to acquire the entire issued share capital of JAPEX UK (JUK) E&P from Japan Petroleum Exploration. The transaction, valued at an enterprise value of $193 million (£149.5 million), increases Ithaca Energy’s stake in the Seagull oilfield in the UK North Sea from 35% to 50%.
