Ithaca may be cooling on BP assets with Canada deal – Daily Business

Ithaca Energy, the North Sea-focused FTSE 100 explorer, has made its first move out of the Continental Shelf with an $860m deal in Canada.

Analysts believe the acquisition of assets off the coast of Newfoundland and Labrador from Suncor suggest it will not be looking to pick up UK assets being sold by BP.

The Canada deal will add an initial equivalent of about 30,000 barrels of oil a day, raising its daily production to up to 150,000 barrels over the medium term.

Ithaca will close the deal with the Canadian company early next year, giving it a platform to expand across North America.

Executive chairman Yaniv Friedman said: “This acquisition marks the next era of growth for Ithaca Energy.

‘The Transaction delivers on our clear stated growth strategy as we seek to diversify and grow our production and resource base and replicate our success in the United Kingdom Continental Shelf through disciplined international expansion in regions we believe we can create long-term value for our shareholders.

“It adds long-life, low-decline barrels in an offshore operating environment similar to the UKCS, which will materially enhance our medium-term production outlook and create a platform for further organic growth and consolidation, while expected to deliver immediate cash flow and dividend accretion.

“We are excited to welcome an experienced operating team with deep regional expertise and to build on the strong operating history of these assets.”

Analysts at Panmure Liberum said: “The addition of two new production hubs in a new jurisdiction is a clear statement of intent for further inorganic growth and suggests Ithaca may no longer be in the mix for BP’s UK asset sales.”