UK's Ithaca Energy Restructures US$1.8 Billion Financing, Extends Maturity to 2032

en.Wedoany.com Reported - On October 12, UK oil and gas producer Ithaca Energy announced that it had revised and signed a reserve-based lending facility totaling US$1.8 billion, extending the final maturity date of the facility to December 31, 2032, and securing more favorable financing pricing terms. The adjustment involves a US$1.3 billion revolving credit facility and a US$500 million letter of credit facility, while also amending the facility increase mechanism to allow the total committed amount under both financing instruments to be further increased by up to US$1 billion.

The financing agreement was reached between Ithaca Energy's subsidiary Ithaca Energy (UK) Limited and its existing bank lending syndicate. The revised facility structure retains a US$1.3 billion cash revolving credit facility, which can be used for general corporate operations and investment expenditures; a separate US$500 million letter of credit facility primarily supports the group in meeting relevant payment obligations, including oil and gas asset decommissioning costs. The new increase mechanism applies to both the loan and letter of credit portions of the financing arrangement.

Ithaca Energy previously completed a reserve-based lending refinancing in 2024, and in September 2025, through the facility increase mechanism, raised its revolving credit facility from US$1 billion to US$1.3 billion. As of December 31, 2025, the total facility amount reached US$1.8 billion, of which the US$1.3 billion cash loan facility remains undrawn, with a separate US$500 million letter of credit facility. The original facility arrangement was scheduled to mature in 2029.

On October 5, Ithaca Energy signed an offshore oil and gas asset acquisition agreement with Canada's Suncor Energy, proposing to acquire an offshore oil and gas asset portfolio in Newfoundland and Labrador, Canada, for a base cash consideration of US$860 million, with a contingent consideration of up to US$250 million linked to oil prices. The transaction is expected to close in the first half of 2027, subject to relevant Canadian regulatory and government approvals. The company plans to fund the transaction through a combination of existing cash, the reserve-based lending facility, and local Canadian secured financing.

This financing adjustment covers Ithaca Energy's existing oil and gas asset portfolio and future corporate investment needs. The company also holds a 20% interest in the UK's Rosebank oilfield and full ownership of the Cambo oilfield.