Israel’s Delek Group-owned Ithaca Energy has entered into a deal to acquire Siccar Point Energy for approximately $1.5bn.

The transaction amount includes an upfront payment of $1.1bn, and contingent payments of up to $360m.

Siccar Point Energy is the operator of the Cambo oil project in the UK’s North Sea, with a stake of 70%.

The acquisition includes Siccar Point’s stake in the Cambo project, and a 20% stake in Rosebank. Ithaca will also add Schiehallion and Mariner fields to its portfolio, as part of the transaction.

In addition, the transaction also includes Siccar Point’s stake in the producing Jade gas field, where Ithaca is a partner.

Ithaca Energy CEO Alan Bruce said: “This is a transformational deal for the company, which cements Ithaca’s position as a leading independent E&P operator in the North Sea.

“The acquisition doubles our recoverable resources and means that we now have interests in a significant portion of the largest UKCS fields. This includes interests in two of the UK’s most strategically important and near-term developments, which will enable us to play an increasing role in securing domestic energy supply for the UK.

“This enlarged portfolio will underpin production of 80,000-90,000 barrels of oil equivalent per day for the next decade, with the potential for further growth through low-risk drilling.”

Siccar Point Energy suspended the Cambo project, following the withdrawal of Royal Dutch Shell from the project in December 2021.

Cambo is estimated to contain approximately 800 million barrels of oil and is is expected to deliver 170 million barrels of oil equivalent over its operational life of 25 years.

Ithaca Energy said that it will develop Cambo, as well as the nearby Rosebank field.

Bruce added: “The development of the Cambo and Rosebank fields is a huge opportunity to not only help secure the UK’s energy future for at least another quarter of a century, but also to create thousands of direct and indirect jobs in the process.”