Management reshuffle as Ithaca Energy’s deal with Eni nears

Ithaca Energy has announced several changes to its management and executive team as part of the deal for Eni’s UK mining assets.

The merger, announced on April 23, should create a company with the largest resource base in the British North Sea, which will generate a total dividend of $500 million in 2024 and 2025.

The management board, which consulted the company’s majority shareholder and Eni when making the decision, believes that the new appointments will strengthen its leadership.

Gilad Myerson is to step down as Executive Chairman and will be succeeded by Dave Blackwood, who will become interim non-executive Chairman, after which it will be proposed to appoint Yaniv Friedman as Executive Chairman, once all formal conditions for his appointment have been met

Upon completion of the business combination, Luciano Vasques will take over as CEO and interim CEO Iain Lewis will return as CFO.

Odin Estensen will become the new chief operating officer and Zvika Zivlin will be appointed senior independent director, as announced on May 16.

Myerson contributed to the development of Ithaca Energy, significantly increasing its footprint, production, reserves and cash flow through the integration of Chevron North Sea, the acquisitions of Mitsui UK, Marubeni UK, Summit E&P and Siccar Point Energy, as well as sanctioning the development of Rosebank and its listing on the London Stock Exchange Securities.

He will be available as an advisor for a limited time if needed.

Blackwood joined the board in October 2022 as a non-executive director and chair of the health, safety, environment and safety committee after a 47-year career in the energy sector, including leading BP’s upstream business in the UK and Norway.

Vasques’ career spans over 30 years and includes a number of managerial, technical and operational positions. He currently serves as Managing Director of Eni UK and led the recent acquisition and integration of Neptune Energy into its business. He previously served as Eni’s head of Central Asia, overseeing interests in two giant oil and gas fields, Kashagan and Karachaganak.

Meanwhile, Estensen has over 35 years of experience in the oil and gas sector and joins Ithaca from Neptune Energy, where he served as managing director of its Norway and UK operations.

Blackwood said: “The transformational merger with Eni’s UK division marks an opportune time for a change in the company’s leadership and we wish Gilad all the best for the future.

“We are pleased to announce the appointment of a number of high-quality board members and executives, positioning the company for continued success as we face another exciting phase of growth as the largest resource holder in the British North Sea.

“Yaniva’s proposed appointment will continue to support our international growth aspirations, building on his proven commercial track record and industry leadership around the world.

“Luciano’s industry and integration experience will be critical to the company as we continue to grow organically based on our portfolio of high-value projects and successfully deliver on the many growth opportunities resulting from the merger.

“Finally, Odin’s appointment will bring further rigor to our day-to-day operations to ensure we continue to provide safe and reliable operations.”

Myerson commented: “I am extremely proud of what Ithaca Energy has achieved during my tenure – the recent announcement of its merger with Eni’s UK subsidiary is transformational and I am delighted to have led the company to this important milestone.”

Ithaca also provided updated financial data for the first quarter, showing adjusted pre-tax profit of $339 million – up from $518.1 million at the same stage last year.

Statutory net income of $42.7 million also fell significantly from $158.4 million in 2023.

However, net operating cash flow of $313.8 million was closer to last year’s $351.4 million.

Continued cost control delivered operating costs of $122 million, with first quarter asset capital expenditure of $93 million and Rosebank capital expenditure of $43 million, including ongoing modifications to the floating production and offloading storage facility.

Adjusted net debt was $461.1 million as of March 31, compared to $571.8 million at the end of 2023 and $899.6 million at the end of March last year.

Another interim dividend for 2023 was paid in April in the amount of USD 134 million, which means that the total dividend payment for 2023 will be USD 400 million.

Lewis said first-quarter results were in line with expectations and were included in full-year guidance set in late March, following “a number of operational issues across the non-operated joint venture portfolio which have now been resolved.”

The group believes that with interests in six of the ten largest deposits in the UK Continental Shelf and two of the largest pre-development deposits, it can leverage its significant reserves and operational capabilities to play a key role in ensuring the security of the country’s energy supply.

Don’t miss the latest headlines with our twice-daily newsletter – register here for free.