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Ithaca/Cambo: acquisition is well-timed but roadblocks remain

God Sale of Cambo Looks less private equity inverter than hot potato drop. The Israeli Delek Group pays up to $ 1.5 billion for Siccar Point Energy, whose oil and gas portfolio is controlled by the controversial Cambo oil field west of Shetland.

Combo has angered climate activists, who believe a smear of new gas and oil projects contradicts Britain’s net zero target for 2050. The regulator has delayed approval of the license and Shell, the bulk of oil and a 30% partner in Siccar in the project, Called time.

But that was in early December, and a lot has changed since then. First, the price of oil rose by almost half. Russia’s war on Ukraine has diverted the debate from the release of carbon to energy security. Last month, a day before the expiration of the expiration date, the North Sea Transit Authority granted an extension of the license on the combo. Shell said the extra time would allow it to “evaluate all potential future options.”

The arrival of Delek at the scene, through its Ithaca Energy arm, adds another mark. Cicar Point, backed by the private equity duo Blackstone and Blackwater, has already looked a bit long in the tooth. It was reportedly shown around the street. Ithaca is a sleeveless investor who is busy accumulating portfolios in the area. It acquired Chevron’s oil and gas assets in 2019. Delek has bankers in the portfolio and hopes to list it this year.

The attention given to the combo – thanks in no small part to ecological activists – contradicts its size. The original developers expect it to produce up to 170 million barrels of equivalent oil over 25 years. Shell’s share, relatively divided, equals a production of about two weeks. The nimble little Ithaca has more to gain and it is also acquiring a gas field along with holdings in the larger Mariner and Schehallion oil fields.

Aberdeen, the home ground of Ithaca, is a long way from the homeland of Odysseus after whom it is named. The timing is smart, but the basic trends – towards the release of carbon and lowering oil prices – remain intact. Returning, as Homer’s protagonist discovered, can come a long time.

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Ithaca/Cambo: acquisition is well-timed but roadblocks remain Source link Ithaca/Cambo: acquisition is well-timed but roadblocks remain

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