Ithaca launches £550m note offering as part of Chevron purchase

Beatrice Bravo - one of Ithaca's North Sea assets. Photo by Ithaca Energy
Beatrice Bravo - one of Ithaca's North Sea assets. Photo by Ithaca Energy

Aberdeen-headquartered Ithaca Energy has announced it is set to launched a debt finance offering of £558 million in senior notes in an effort to realise its acquisition of Chevron’s North Sea business.

The firm revealed in May it would snap up US oil giant Chevron’s central North Sea business in a £1.6 billion deal.

The deal hands Ithaca stakes in 10 producing North Sea fields and continues the trend of North American majors selling large packages of UK assets.

Ithaca, a subsidiary of Israel-based Delek Group, said the Chevron deal established it as the “second largest independent oil and gas producer” in the UK North Sea.

Ithaca said Delek Group will be used to “fund part of the Chevron acquisition purchase price, repay in full amounts outstanding under certain of the company’s existing debt facilities and pay related fees and expenses”.

The firm will operate four of the 10 fields it is buying into – namely Alba, Alder, Captain and Erskine.

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