Ithaca Energy has announced an “inevitable” redundancy consultation following its combination with Italian energy giant Eni.
A spokesperson for the company told Energy Voice: “Ithaca Energy has announced plans to begin a consultation process regarding a proposed onshore reorganisation, which may result in redundancies. We are actively engaging with employee representatives.
“Redundancies are always an inevitable consequence of a merger of this significance, but it does not reflect on our continued ambitions for material growth, both in the North Sea and beyond, following our transformational business combination.”
Despite confirming that the employees facing redundancy are from its onshore workforce, Ithaca could not confirm what offices were impacted or how many workers would be let go.
In October, Ithaca Energy completed its “business combination” for the majority of Eni’s UK upstream oil and gas assets.
The combination is funded via the issue to Eni UK of a number of new ordinary shares that represent approximately 38.7% of the enlarged issued share capital of Ithaca.
The North Sea operator retained the remaining stake in the company.
Ithaca Energy controls stakes in 37 producing fields within UK waters, following the deal.
Of the 37 fields, the firm operates ten and holds a stake in two out of the UK’s three largest untapped discoveries.
Among these assets is Rosebank, the UK’s largest untapped field, in which it holds a 20% stake alongside operator Equinor, which controls the remaining 80%.
The combined Ithaca Energy and Eni has a daily production of between 100,000 and 110,000 barrels of oil equivalent per day, and has set out ambitions to reach 150,000 per day by the beginning of the next decade.
As part of its combination deal with Eni, the firm appointed Luciano Vasques as CEO.
Additionally, two new non-executive directors were appointed to the board of directors: chief transition and financial officer, chief operating officer and general manager Francesco Gattei, and chief operating officer for global natural resources and general manager Guido Brusco.
The deal for Eni’s assets excluded East Irish Sea and CCUS activities within the UK.
The future of the Rosebank oil field was recently thrown into doubt following a court ruling that deemed the project’s environmental impact assessment (EIA) as unlawful.
Despite the court’s decision, Equinor will continue with pre-production work on the Rosebank project and is set to resubmit its consent applications.
Ithaca and its partner claim that Rosebank will create up to 2,000 jobs and the pair will continue efforts to develop the project.
Sitting 80 miles off Shetland, the 300 million barrel oil field has been in the spotlight for some time as campaigners rally against the development.
