UK's Ithaca Energy buys 50% stake in Tobermory gas from Shell UK

By Stephanie Kelly

LONDON, Nov 19 (Reuters) - North Sea oil and gas producer Ithaca Energy ITH.L said on Wednesday it has agreed to buy a 50% stake in the Tobermory gas discovery from Shell UK SHEL.L, located in the West of Shetland basin off Scotland.

Shell's interest in Tobermory will form part of Adura, a joint venture with Equinor EQNR.OL expected to be launched later this year. That partnership, announced in December 2024, will combine Shell and Equinor's UK offshore oil and gas assets.

Wednesday's announcement with Ithaca supports Shell's West of Shetland gas growth strategy, a Shell spokesperson said. Shell and Ithaca already are 50/50 partners in the Tornado discovery.

In a sign of Shell's broader shift back to oil and gas production and away from renewables, Shell recently exited the MarramWind and CampionWind projects off the coast of Scotland.

Ithaca is one of the largest independent oil and gas companies in the UK Continental Shelf. The company said on Wednesday it was progressing toward a final investment decision in the Cambo and Tornado discoveries.

In October 2024, Ithaca announced it had completed a 754 million pound ($993 million) deal to buy nearly all of Eni's ENI.MI UK oil and gas producing assets.