Ithaca Energy, a leading independent oil and gas company based in the UK North Sea, has raised its production guidance for 2025 for the second time this year, following a robust performance in the first half. The company reported an average production of 123,600 barrels of oil equivalent per day (boe/d) for the first six months of 2023. As a result, Ithaca has adjusted its full-year production forecast to a range of 119,000–125,000 boe/d, up from the previous estimate of 109,000–119,000 boe/d.
The company’s impressive production growth has positioned it as the largest holder of oil and gas resources in the UK North Sea, especially after its acquisition of Eni’s UK business last year. Ithaca Energy’s strategy has focused on low-risk consolidation within its core UK Continental Shelf (UKCS) basin, which has been evident through its ongoing mergers and acquisitions (M&A) activities.
Strategic Acquisitions Fuel Growth
Recent transactions have allowed Ithaca Energy to increase its ownership stakes in significant assets. Notably, the company completed the acquisition of Japex UK E&P, which raised its stake in the long-life Seagull field from 35% to 50%. This acquisition has also enhanced its position in the high-margin, low-emission operated Cygnus gas field, contributing to additional gas production.
Ithaca Energy now ranks as the second largest independent producer in the UK by output, boasting the largest resource base in the region. The firm holds stakes in six of the ten largest fields in the UKCS and two of its largest pre-development fields. Among these is the controversial Rosebank oilfield, operated by Equinor. This project is currently undergoing a reassessment process, requiring a new application for UK oil and gas projects, which is expected to be submitted in the second half of 2023. The goal is to secure updated consents by 2026.
Future Production Plans and Milestones
Ithaca Energy is actively preparing for significant milestones in the Rosebank project’s multi-year development program. The company aims to achieve first production by 2026/27. As stated in their recent updates, “The Group continues to maintain an active but patient pursuit of M&A opportunities both in the UKCS and globally, in line with its focused international expansion strategy.”
This proactive approach, coupled with a strong operational performance in the first half of the year, reinforces Ithaca Energy’s position as a key player in the oil and gas sector. As the company continues to navigate the complexities of the energy market, its strategic decisions will likely have far-reaching implications for its future growth and stability.
