Italian multinational energy company Eni has announced that it has completed the combination of almost all of its upstream assets in the UK, excluding East Irish Sea assets and carbon capture, utilisation and storage (CCUS) activities, with Ithaca Energy.  

The combination has been funded through the issue to Eni UK of several new ordinary shares representing approximately 38.7% of Ithaca's enlarged issued share capital. 

In April, a deal was announced in which Eni acquired a stake in Ithaca Energy, a company focused on the North Sea, and appointed Luciano Vasques, former managing director of Eni UK, as the CEO of the merged entity. 

The arrangement involves Ithaca issuing 635 million shares to Eni, giving the Italian oil and gas company a 38.5% interest in the expanded Ithaca share capital. 

The merger is expected to form a combined entity with estimated production surpassing 100,000 barrels of oil equivalent per day (boepd) in 2024, and the potential to increase organically to 150,000boepd by the early 2030s. 

In a statement, Eni said: "The merger demonstrates Eni's dedication to the UK, where it is involved in the entire energy value chain, including oil and gas exploration, renewable energy, CCS projects and potential future development of magnetic fusion projects." 

The combination of two complementary portfolios strengthens Eni's position in upstream operations in the UK, where the company foresees opportunities for growth and optimisation. 

Eni added that the transaction “once again demonstrates the effectiveness of Eni's unique satellite model and is consistent with previous successful mergers that Eni has executed”, such as Vår Energi in Norway and Azule Energy in Angola.