Ithaca Energy has acquired Siccar Point the operator of the controversial Cambo oil field in the North Sea field for US$1.52bn.
It comes just a day after Boris Johnson made North Sea production a key plank of the UK’s energy strategy going forward.
Cambo has been a touchstone for environmental activists with widespread protests about the field’s development.
Siccar owns 70% of Cambo, with Shell the remainder, but the UK-based oil giant has been flip-flopping over its commitment indicating it would drop out in December, which led to the development being put on hold.
Reports recently have suggested Shell might change its mind again with oil prices at around US$110 barrel, though today said its position was unchanged.
A final investment decision is expected next year.
Unlisted Ithaca, by contrast, has no such qualms and said the Siccar acquisition would cement its position as the leading UK North Sea E&P Operator.
As well as Cambo, the deal includes Rosebank, another undeveloped field, and combined the two are the largest undeveloped and most strategically important discoveries in the UK North Sea, it said.
Siccar Point already has assets in production including the Schiehallion and Mariner fields, both among the top 10 UK producers, alongside an interest in the Jade gas field, where Ithaca is an existing partner.
Adding Siccar Point’s assets will double its recoverable reserves and support the production of at least 80,000 - 90,000 boe/d through the next decade, Ithaca added.
“Cambo and Rosebank represent an opportunity for Ithaca to develop fields that will contribute significantly to the UK's energy security. The Cambo field on its own is anticipated to deliver up to 170 million barrels of oil equivalent during its 25-year operational life,” said its statement.
Alan Bruce, chief executive, added: "This is a transformational deal for the company which cements Ithaca's position as a leading independent E&P operator in the North Sea... and means that we now have interests in a significant portion of the largest UKCS fields".
Yesterday, the UK government announced a new licensing round for oil and gas projects in the North Sea adding that producing gas in the UK had a lower carbon footprint than that imported from abroad.
"The development of the Cambo and Rosebank fields is a huge opportunity to not only help secure the UK's energy future for at least another quarter of a century, but also to create thousands of direct and indirect jobs in the process", said Bruce.
Payment for Siccar comprises US$1.1bn upfront and a series of contingent payments totalling a maximum of US$360mln (mostly linked to new developments) with a further US$60mln contingent on crude and gas prices.
Operatorship of key UK assets will transfer to Ithaca on closing with Siccor's management also moving across.