Ithaca Energy plc
(“Ithaca Energy” or the “Group”)
Ithaca Energy announces development of the Rosebank field
Ithaca Energy, together with Equinor (the Operator), are delighted to announce that they have taken the final investment decision to progress Phase 1 of the Rosebank development on the UK Continental Shelf, together investing $3.8 billion in the development. The North Sea Transition Authority (“NSTA”) granted consent for the development of the field on 27 September 2023. Ithaca Energy owns a 20% working interest in Rosebank.
The Rosebank field is located around 130 kilometres north-west of Shetland. Recoverable resources are estimated at around 300 million barrels of oil from phase 1 and 2, with Phase 1 targeting an estimated 245 million barrels of oil. The field will be developed with subsea wells tied back to a redeployed Floating Production Storage and Offloading vessel (“FPSO”), with first production expected in 2026-2027. The Rosebank field will produce in excess of 21 MMSCF of natural gas every day, the equivalent to the daily use of Aberdeen City.
The Rosebank development has been optimised to reduce carbon emissions, in line with the North Sea Transition Deal, with the FPSO designed to be electrification-ready. Ithaca Energy and Equinor continue to collaborate with government and industry stakeholders to pursue a regional solution for power from shore to Rosebank and nearby fields with the objective of minimising carbon emissions from production.
The Rosebank development is expected to lead to £8.1 billion1 of total direct investment, of which 78% is likely to be invested in UK-based businesses. It is expected to support around 1,600 jobs during the height of the construction phase of the project, and it will continue to support approx. 450 UK-based jobs during the lifetime of the field.
The following contracts have been awarded in relation to the development:
Project management and engineering activities will be performed mainly from Aberdeen and tree systems will be manufactured in Dunfermline. Umbilicals will be produced in Newcastle, pipelines will be fabricated in Evanton and the main vessel mobilisation site will also be in the UK. In addition, several other fabrication sites in the UK will contribute to the project.
Gilad Myerson, Executive Chairman, Ithaca Energy, commented: “We are delighted to announce the decision to move forward with the Rosebank development alongside Equinor. Rosebank stands as the largest undeveloped field in the UK, and with the receipt of development consent from the NSTA, we are now poised to embark on a journey that will not only provide critically important domestic energy but also ignite substantial economic impact. The Rosebank project will create thousands of jobs and contribute significantly to securing the UK’s energy needs for many years to come.”
Alan Bruce, Chief Executive Officer, Ithaca Energy, commented: “Ithaca Energy continues to deliver against its stated strategy and demonstrate its commitment to investing in the UK North Sea. We look forward to expanding our working partnership with Equinor to deliver one of the lowest emission intensity assets in the UK. The Rosebank development represents a significant investment in the UK and Scotland, and we are delighted to be supporting our local supply chain.”
1 Source: Socioeconomic report prepared by Wood Mackenzie and Voar Energy
Kathryn Reid – Head of Investor Relations, Corporate Affairs & Communications
FTI Consulting (PR Advisers to Ithaca Energy)
+44 (0)203 727 1000
Ben Brewerton / Nick Hennis
About the Rosebank development:
About Ithaca Energy plc
Ithaca Energy is a leading UK independent exploration and production company focused on the UK North Sea with a strong track record of material value creation. In recent years, the Company has been focused on growing its portfolio of assets through both organic investment programmes and acquisitions and has seen a period of significant M&A driven growth centred upon two transformational acquisitions in recent years. Today, Ithaca Energy is one of the largest independent oil and gas companies in the United Kingdom Continental Shelf (the “UKCS”), ranking second by resources.
With stakes in six of the ten largest fields in the UKCS and two of UKCS’s largest pre-development fields, and with energy security currently being a key focus of the UK Government, the Group believes it can utilise its significant reserves and operational capabilities to play a key role in delivering security of domestic energy supply from the UKCS.
Ithaca Energy serves today’s needs for domestic energy through operating sustainably. The Group achieves this by harnessing Ithaca Energy’s deep operational expertise and innovative minds to collectively challenge the norm, continually seeking better ways to meet evolving demands.
Ithaca Energy’s commitment to delivering attractive and sustainable returns is supported by a well-defined emissions-reduction strategy with a target of achieving net zero by 2040.
Ithaca Energy plc was admitted to trading on the London Stock Exchange (LON: ITH) on 14 November 2022.