Oil & gas asset consolidation in full swing in UK North Sea: Harbour makes a play for Waldorf

December 12, 2025, by Melisa Cavcic

London-listed oil and gas company Harbour Energy has taken a step to bring into its fold all subsidiaries of Waldorf Energy Partners Limited (WEPL) and Waldorf Production Limited (WPL), currently in administration, for $170 million. This move will bolster Harbour’s portfolio in the UK sector of the North Sea.

The joint administrators of Waldorf Energy Partners and Waldorf Production have signed a binding share sale and purchase agreement with a wholly-owned subsidiary of Harbour Energy for the sale of the Waldorf Group, save for Waldorf Energy Finance (WEF).

The Waldorf Group has also entered into a lock-up agreement in support of the transaction with, amongst others, the holders of approximately 87% of the outstanding principal of the bonds issued by Waldorf Production UK (WPUK), the holders of approximately 40% of the outstanding principal of the bonds issued by WEF, Capricorn Energy and Alpha Petroleum (UK) Holdings.

The acquisition is subject to satisfaction of certain conditions precedent, including the consent from the North Sea Transition Authority (NSTA) and the settlement of certain of the Waldorf Group’s liabilities including by way of restructuring plans. Following announcement of the transaction, WPUK has decided to no longer pursue its appeal to the Supreme Court and will now move to withdraw the appeal.

Paul Tanner, Chief Executive Officer of Waldorf Group, commented: “This transaction will deliver an outcome which is beneficial for the Waldorf Group and its stakeholders including creditors, customers, suppliers and joint venture partners. We are delighted that custodianship of the Group’s assets will be passed to Harbour Energy, one of the leading UK North Sea operators, ensuring they are in the right hands for the future.

We recognise that the past few years have been challenging for both Waldorf and the broader UK North Sea oil and gas industry. We would like to thank the Group’s stakeholders, not least our joint venture partners, for the support that has been shown during this period. We look forward to working closely with Harbour Energy during the coming months to achieve a safe transfer of operations and closing in the second quarter of 2026.”

Harbour Energy will fund the acquisition through readily available sources of liquidity. This addition is expected to be immediately materially accretive to the firm’s free cash flow and support the competitiveness, resilience and longevity of the company’s UK business.

To this end, the acquisition is anticipated to add oil-weighted production of 20 kboepd and 2P reserves of 35 mmboe, increase Harbour’s interest in its operated Catcher field to 90% from 50% and improve the financial stability of the joint venture partnership, while also providing a new production base for the firm in the Northern North Sea with the addition of a 29.5% non-operated interest in the Kraken oil field.

The transaction is set to unlock operational synergies through the integration of Waldorf’s non-operated portfolio into Harbour’s UK organization, delivering significant financial synergies with the release of an estimated $350 million of cash currently posted to secure the former’s decommissioning liabilities, leveraging the latter’s investment grade balance sheet, and the addition of Waldorf’s UK ring fence tax losses.

Scott Barr, Managing Director of Harbour’s UK Business Unit, highlighted: “This transaction is an important step for Harbour in the UK North Sea, building on the action we’ve already taken to sustain our position in the basin given the ongoing fiscal and regulatory challenges.

“It stabilises the Catcher joint venture partnership and delivers immediate cash flow benefits. It also improves the long-term sustainability of our UK business, the jobs it continues to support and the energy security it provides. In addition, it facilitates a welcome solution to funding and decommissioning challenges for multiple parties in the UK North Sea.”

The completion is expected to occur during the second quarter of 2026 and is subject to, among others, customary regulatory approvals and full and final settlement of all creditor claims against Waldorf’s subsidiaries. This acquisition moves comes shortly after Harbour Energy started the process to offload natural gas assets offshore Indonesia for a cash consideration of $215 million.

The consolidation across the UK oil and gas sector is ongoing, as illustrated by Shell and Equinor’s launch of Adura, TotalEnergies and NEO NEXT’s quest to create NEO NEXT+, and Serica Energy’s purchase of Prax Upstream.