Delek buys Siccar Point to expand North Sea production
2 min readDelek Team Ltd. (TASE:DLEKG), managed by Yitzhak Tshuva, has described that its North Sea oil and power fuel operator unit Ithaca Power has signed an settlement to buy Siccar Stage Power. Ithaca will invest in all the shares in Siccar Point Electrical power, which owns oil and fuel generation belongings – the Mariner and Schiehallion fields – and a 30% stake in the tested Cambo and Rosebank business discoveries in the United kingdom waters of the North Sea.




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Ithaca explained that the acquisition is part of its preparations for an IPO in the course of 2022 aimed at escalating its offshore creation and guaranteeing extensive-term reserves.

Ithaca will pay back $1.1 billion for Siccar Position Electricity together with the firm’s $200 million debt to bondholders, which is due to be repaid in March 2026, whilst the bondholders will be entitled to instant repayment if they prefer subsequent the transfer of possession.

Ithaca will finance the remaining $900 million as a result of its current credit score line from RBL, dollars accrued by Siccar Position considering the fact that the start of 2022 and its personal cash reserves. Ithaca estimates that based on the recent rate of generation and present sales and forecasts for the selling prices of oil and gas, it will be in a position to repay credit extended by RBL to finance the deal within a lot less than 12 months from closing the acquisition. Below the phrases of the deal, Ithaca will be entitled to all dollars acquired by Siccar Stage considering that the start out of 2022.

The offer also features up to $300 million for the declared discoveries at Rosebank and Cambo, topic to the essential financial investment decision and regulatory approvals, for which an excess $60 million payment is contingent, and whicvh also depends on upcoming oil prices.

Delek Group explained that the deal will boost Ithaca’s every day manufacturing potential from 8,000-9,500 daily barrels of oil to 75,000-85,000.

Delek added that the Cambo and Rosebank discoveries are among the the most significant North Sea offshore oil fields yet to be created, and there improvement is now considered of good relevance by the British governing administration as section of its endeavours to build domestic vitality resources and assure vitality independence in the wake of the modern Russian invasion of Ukraine.

Printed by Globes, Israel business enterprise information – en.globes.co.il – on April 8, 2022.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.


