Ithaca Energy Raises 2025 Production Forecast Following Strong Performance

Ithaca Energy, a leading independent oil and gas firm in the UK North Sea, has raised its production guidance for 2025 for the second time this year, citing a robust first-half performance. The company reported an average production of 123,600 barrels of oil equivalent per day (boe/d) during the first half of 2023. Consequently, Ithaca Energy 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.

Ithaca Energy has significantly increased its oil and gas production over the past year. Following its acquisition of Eni’s UK business, the company has positioned itself as the largest holder of oil and gas resources in the UK North Sea. The firm continues to actively pursue mergers and acquisitions (M&A) as part of its strategy to consolidate its presence in the UK Continental Shelf (UKCS). Recent bolt-on acquisitions have enhanced Ithaca Energy’s stakes in crucial assets within its portfolio.

M&A Strategy and Recent Acquisitions

According to the company, “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.” Recently, Ithaca Energy completed the acquisition of Japex UK E&P, which increased its stake in the long-life Seagull field from 35% to 50%. This acquisition has also contributed to an increase in gas production from the high-margin, low-emission operated Cygnus gas field.

Ithaca Energy ranks as the second-largest independent producer in the UK by output, holding the most substantial resource base in the region. The company possesses stakes in six of the ten largest fields in the UKCS, as well as in two of the largest pre-development fields in the area.

Focus on Rosebank Oilfield

Ithaca Energy has a stake in the controversial Rosebank oilfield, which is operated by Equinor. The project is currently facing regulatory scrutiny and requires the submission of an updated application for UK oil and gas projects. This application is expected to be filed in the second half of 2023, with the aim of obtaining revised consents by 2026.

Project activities at Rosebank are intensifying as the company prepares for significant milestones in its multi-year development program. Ithaca Energy has set a target for first production to commence in 2026/27. The company’s proactive approach is indicative of its commitment to advancing its projects, despite the complexities involved in the regulatory landscape.

As Ithaca Energy continues to enhance its production capabilities and expand its asset portfolio, it remains a key player in the evolving landscape of the UK energy sector.