Delek's Ithaca in Advanced Talks with Eni UK for a mega deal

Delek Group Ltd. (TASE:DLEKG) disclosed that its North Sea energy exploration and production subsidiary, Ithaca Energy (LSE:ITH), is currently engaged in advanced negotiations with the UK arm of Italian energy giant Eni, known as Eni UK. The discussions center around the potential acquisition of Eni UK's North Sea gas and oil assets by Ithaca Energy. As part of the proposed agreement, Ithaca intends to offer a 38%-39% ownership stake in the company to Eni UK in exchange for the asset rights. Should the deal materialize, Delek Group would consequently reduce its current ownership interest in Ithaca from 88.55% to approximately 53%-54.9%.

The agreement between Ithaca Energy and Eni UK has the potential to elevate Ithaca to a prominent position as one of the largest independent oil producers in the North Sea. Furthermore, it may act as a catalyst for additional consolidation within the industry, as companies look to achieve greater scale to finance investments and address the expenses associated with decommissioning aging oil and gas assets in the basin.

Eni UK is the British arm of Eni, a major multinational energy company headquartered in Italy. Eni is one of the largest integrated energy companies in the world, operating in the exploration, production, refining, distribution, marketing, and trading of oil, gas, and electricity. Eni UK focuses on exploration and production activities in the United Kingdom Continental Shelf (UKCS), particularly in the North Sea region.

Eni UK has a significant presence in the North Sea, where it holds interests in various oil and gas fields. The company is actively involved in developing and producing hydrocarbons from both conventional and unconventional resources in this mature offshore basin. Eni UK's operations are characterized by advanced technologies, expertise in offshore engineering, and a commitment to environmental sustainability.

Ithaca Energy is a subsidiary of Delek Group, a global energy company based in Israel. Ithaca Energy primarily operates in the exploration, development, and production of oil and gas reserves, with a focus on assets located in the North Sea region.

As an independent exploration and production company, Ithaca Energy is known for its expertise in offshore drilling and production techniques, particularly in the North Sea's challenging operating environment. The company's portfolio includes a mix of producing fields, development projects, and exploration prospects, contributing to its position as a significant player in the North Sea oil and gas sector.

Delek Group, the parent company of Ithaca Energy, is a diversified energy conglomerate with operations spanning across the energy value chain. Delek's activities encompass exploration and production, refining, marketing, distribution, and retailing of petroleum and natural gas products, as well as power generation and renewable energy projects.