Israeli company Delek Group announced today that its Aberdeen-based subsidiary, Ithaca Energy, has completed the acquisition of Chevron's UK North Sea business.
The first £ 1.6 billion deal announced in May hands over shares in 10 producing fields to Ithaca, increasing its production by about 300% to 80,000 barrels per day.
Ithaca said the transaction – paid for the use of bank credit and a debt financing offer – established it as the second largest independent oil and gas producer in the British North Sea.
It takes over the leadership of four of the ten fields – Alba, Alder, Captain and Erskine.
Headquartered in California, Chevron maintained its unused 19.4% share of the vast Clair field west of the Shetland Islands.
Les Thomas, managing director of Ithaca, said that around 500 Chevron employees, including 200 offshore employees, would move to Ithaca without any anticipated layoffs.
Also read: "Ithaca wants to give the Chevron North Sea the ethos of small businesses," says the CEO
Delek announced today that Ithaca has signed a five-year contract with BP for the distribution and marketing of oil and gas in the newly acquired fields.
In the meantime, Delek remains in talks with investors about his plans to bring Ithaca to the London Stock Exchange.
The transaction between Delek and Chevron continues the trend of the North American majors to sell large packages of British assets.
ConocoPhillips recently sold its UK business to Chrysaor, which is funded by private equity. Marathon Oil has sold its North Sea business to RockRose Energy.
The Canadian company Nexen, which owned several North Sea fields, was acquired by China's Cnooc in 2013.
North American oil and gas companies Apache Corporation, CNR International, Suncor and ExxonMobil continue to have significant UK portfolios.