North Sea operator brings JAPEX’s UK arm into its fold

July 7, 2025, by Melisa Cavcic

Ithaca Energy, a North Sea oil and gas operator and producer, has expanded its upstream portfolio with the acquisition of JAPEX UK E&P (JUK) from Japan Petroleum Exploration (JAPEX). This move enabled the firm to enlarge its stake in a BP-operated oil field on the UK Continental Shelf (UKCS).

ETAP facility in the North Sea; Source: BP

Ithaca Energy disclosed a sale and purchase agreement (SPA) in March 2025 to buy JUK’s entire issued share capital from JAPEX for an enterprise value of $193 million based on an effective date of January 1, 2024. This transaction consideration amounts to a completion payment of approximately $136 million, following customary purchase price adjustments.

With the acquisition now completed, the firm has increased its stake in the Seagull oil field from 35% to 50%, equaling BP’s interest as the field operator. This adds pro forma 2025 production of approximately 4 – 4.5 kboe/d.

North Sea operator makes a play for JAPEX’s UK arm to fortify its stake in BP’s oil asset

Business & Finance

Yaniv Friedman, Ithaca’s Executive Chairman, commented: “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.”

With over 300 million barrels of oil equivalent in place, the Seagull oil field in the UK Central North Sea was developed as a subsea tie-back to the BP-operated central processing facility (CPF) of the Eastern Trough Area Project (ETAP).

This acquisition comes after Ithaca augmented its portfolio with Eni’s upstream assets in the UK, excluding East Irish Sea ones and carbon capture, utilization, and storage (CCUS) activities.