Ithaca Energy Expands Upstream Portfolio with Acquisition of JAPEX UK E&P
Ithaca Energy, a prominent North Sea oil and gas operator and producer, has recently made a significant move to enhance its upstream portfolio by acquiring JAPEX UK E&P (JUK) from Japan Petroleum Exploration (JAPEX). This strategic acquisition has allowed Ithaca Energy to increase its stake in a BP-operated oil field on the UK Continental Shelf (UKCS).
The sale and purchase agreement (SPA) for the acquisition of JUK’s entire issued share capital was disclosed by Ithaca Energy in March 2025. The transaction was valued at $193 million, with an effective date of January 1, 2024. Following customary purchase price adjustments, the completion payment amounted to approximately $136 million.
Following the successful completion of the acquisition, Ithaca Energy now holds a 50% stake in the Seagull oil field, up from the previous 35%. This aligns Ithaca Energy’s interest with that of BP, the operator of the field. The acquisition is expected to contribute pro forma 2025 production of approximately 4 – 4.5 thousand barrels of oil equivalent per day.
Yaniv Friedman, Executive Chairman of Ithaca Energy, expressed his satisfaction with the acquisition, stating, “We are delighted to complete the acquisition of JUK, in line with our estimated completion date, illustrating the group’s proven execution capabilities.
“The highly accretive acquisition demonstrates the group’s continued delivery of our low-risk inorganic growth strategy, adding incremental production, reserves, and cash flow from a high-quality asset at attractive investment metrics.”
The Seagull oil field, located in the UK Central North Sea, boasts over 300 million barrels of oil equivalent in place. The field has been developed as a subsea tie-back to the central processing facility (CPF) of the Eastern Trough Area Project (ETAP), operated by BP.
This acquisition follows Ithaca Energy’s recent expansion of its portfolio through the acquisition of Eni’s upstream assets in the UK, excluding those in the East Irish Sea and carbon capture, utilization, and storage (CCUS) activities.