Ithaca Vitality PLC, which produces oil and fuel in the UK continental shelf, has accomplished the acquisition of a 50 % stake in two Shell PLC licenses within the West of Shetland Basin, whereas getting into into an settlement to promote a part of its possession within the Fotla venture within the North Sea to Harbour Vitality PLC.
The Shell licenses have earlier been transferred to Shell and Equinor ASA’s UK North Sea three way partnership, Adura. The 50-50 JV launched late 2025.
“The West of Shetland represents a key basin for the Group’s long-term progress, with the continued improvement of the Rosebank discipline and the continued development of the Cambo and Twister discoveries in direction of closing funding determination”, Ithaca government chair Yaniv Friedman mentioned within the firm’s announcement of the deal November 19, 2025.
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Adura-operated Rosebank is on observe to start out manufacturing by 2027, regardless of the rig pausing drilling in April simply after launching work within the first quarter resulting from “an gear dealing with incident”, Ithaca, which owns 20 % within the discipline, mentioned in its quarterly report Wednesday.
Whereas a Scottish court docket invalidated the venture’s consent January 2025, the companions say work can proceed whereas they await new authorities steerage on Scope 3 emissions and the allowing course of.
The two-phase Rosebank, about 130 kilometers (80.78 miles) northwest of Shetland, targets over 350 million barrels of oil equal recoverable sources, in keeping with the house owners.
Additionally within the first quarter Ithaca and equal co-venturer Adura submitted a improvement plan for the Twister fuel discipline, proposed to be tied again to the present Better Laggan Space community infrastructure.
In the meantime Ithaca has entered into an settlement to promote 45 % within the Fotla discipline, within the central North Sea, to Harbor. It mentioned the settlement advances a closing funding determination by yearend.
Concurrently Ithaca executed a rig-sharing settlement with Harbor for the semisubmersible PBLJ by 2030. “This settlement will help the Group’s natural progress ambitions, together with the potential drilling program for the Fotla improvement, de-risking our manufacturing base by continued infill drilling and honoring our commitments to execute Plugging & Abandonment actions”, Ithaca mentioned in its quarterly report.
Within the January-March 2026 quarter, Ithaca reported a secure manufacturing of 126,000 barrels of oil equal a day (boed), in comparison with 127,000 boed in Q1 2025. That was “regardless of hostile climate situations impacting working capability in January and the primary half of February, absolutely mirrored in FY 2026 manufacturing steerage issued in March, which is reaffirmed in the present day”.
“The sturdy operational efficiency is trending into Q2”, Ithaca mentioned.
Web revenue adjusted for nonrecurring gadgets, $69 million, was additionally secure in opposition to Q1 2025 ($69.1 million). Adjusted EBITDAX fell to $570.9 million for Q1 2026 from $653.2 million for Q1 2025. Elevated income resulting from greater liftings partly offset hedging losses.
Whereas incurring derivatives expenses within the first three months of the yr, Ithaca mentioned, “Because of escalated commodity costs, we now anticipate that our FY 2026 dividend will seemingly transfer to the higher finish of our steerage vary at over $500 million, with shareholders taking part within the upside publicity to strengthened money movement era by our distribution coverage in 2026 of 30 % post-tax CFFO”.
Ithaca ended Q1 2026 with a professional forma leverage ratio – adjusted web debt to adjusted EBITDAX – of 0.54x.
To contact the creator, electronic mail jov.onsat@rigzone.com
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