Eni SpA E Italy’s energy giant has merged its UK upstream oil and gas assets with Delek Group's Ithaca Energy, excluding East Irish Sea and carbon capture, utilization and storage activities. On Thursday, Ithaca Energy finalized a £754 million all-share deal to acquire nearly all of Eni's UK oil and gas production assets, establishing one of the largest independent energy companies in the North Sea.

Following this merger, the newly expanded Ithaca Energy now holds stakes in six of the UK’s ten largest oil fields, including major assets like Rosebank, Cambo and Schiehallion, reinforcing its position in the North Sea oil and gas sector.

Eni has now confirmed the completion of the merger following its exclusivity agreement with Ithaca established in March 2024. The deal strengthens Eni’s upstream portfolio in the UK, following its successful satellite model seen in ventures like Var Energi in Norway and Azule Energy in Angola. Funded through the issuance of new shares, Eni now holds a 38.7% stake in the enlarged share capital of Ithaca Energy.

The combined entity has the potential to produce more than 100,000 barrels of oil equivalent per day (boe/d) in 2024, with ambitions to ramp up production to 150,000 boe/d by the early 2030s. Eni aims to use this merger to enhance operational and financial synergies, boost growth and ensure long-term value for shareholders.

As a long-term shareholder in Ithaca, Eni reiterated its commitment to the UK’s energy future, noting that the merged portfolio would support energy security while advancing decarbonization efforts. Ithaca’s diversified assets provide a solid foundation for long-term organic growth, essential for meeting the country’s energy needs and climate goals. The combination positions Ithaca as the largest resource holder in the UK North Sea, with material long-life reserves and a robust resource base of 658 million barrels of oil equivalent.

According to Eni, this merger forms part of a broader strategy to build leaner, more focused companies that can attract new capital and drive growth. Luciano Vasques has been appointed as the new CEO of Ithaca Energy, and two new non-executive directors from Eni have joined the board, reinforcing Eni’s influence in the company’s future direction.

This acquisition solidifies Ithaca’s role in the North Sea while allowing Eni to pursue its satellite strategy, balancing regional focus with diversified energy interests.

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