Home / Business and Economy / Harbour Energy Eyes US Gulf Expansion for $3.2B
Harbour Energy Eyes US Gulf Expansion for $3.2B
22 Dec
Summary
- Harbour Energy is acquiring LLOG Exploration for $3.2 billion.
- The deal includes $2.7 billion cash and $500 million in shares.
- LLOG's assets are low-breakeven with 34,000 boepd production.
Harbour Energy Plc has agreed to a substantial $3.2 billion acquisition of LLOG Exploration Co. This move is poised to establish the deepwater US Gulf of Mexico as a new core business area for Harbour Energy, complementing its existing operations in Norway, the UK, Argentina, and Mexico.
The financial terms of the agreement involve $2.7 billion in cash and $500 million in Harbour Energy voting shares. LLOG is recognized as one of the largest privately held oil and gas producers in the US Gulf, with its assets described as low-breakeven, yielding around 34,000 barrels of oil equivalent per day.
This acquisition aligns with Harbour Energy's international growth strategy, particularly as production in the UK North Sea faces declines and domestic fiscal conditions remain challenging. The deal is anticipated to conclude by the end of the first quarter of next year, pending the fulfillment of standard closing conditions.
