Harbour Energy PLC (LSE:HBR) on Monday announced a major deal which City analysts see as a high-quality, long-term move.
The firm, the North Sea’s largest independent producer, has agreed to Gulf of America focused independent acquire LLOG Exploration Company for $3.2 billion.
The transaction marks Harbour’s entry into the deepwater Gulf of America. LLOG’s operations include production of 34,000 barrels of oil equivalent per day, 271 million barrels of 2P reserves and low breakeven costs. The portfolio is oil-weighted and focused on assets in Mississippi Canyon and Keathley Canyon.
“This acquisition establishes a major new operated production platform and introduces a fifth core business unit that enhances Harbour’s ability to execute value-driven strategic transactions,” stockbroker Cavendish said in a note.
The broker added: “By bringing high-quality, long-life deepwater assets into their portfolio, the acquisition extends Harbour’s reserves life and supports production at c.500Mboe/d until 2030, while offering significant exploration potential.”
Harbour presently produces some 450,000 barrels of oil equivalent per day, said the new US acquisition is expected to close in the first quarter of 2026.
“Today’s announcement delivers on Harbour’s long-standing ambition to establish a presence in the deepwater Gulf of America,” said Harbour chief executive Linda Z Cook.
“With LLOG, we found the right combination of high-quality assets and a talented team, providing a strong strategic and cultural fit with our company.”