Ithaca Inks Sales Agreement with BP for North Sea Crude Oil Production
Ithaca Energy and its wholly owned subsidiary Ithaca Energy (UK) Limited, an independent oil & gas company with exploration, development and production assets in the UK sector of the North Sea, has signed a 5 year agreement with BP Oil International Limited (“BP”) for sales and marketing of all of its qualifying oil production from the North Sea.
As part of the development of the Jacky oil field, Ithaca previously contracted with BP for marketing and sales of oil produced to the Nigg Oil Terminal by Ithaca and its Partners in the Beatrice and Jacky oilfields. The agreement was to access the best available current market price and was for a period of one year with extensions.
Ithaca and BP have now agreed to extend the arrangement to cover all Ithaca's UK oil production up to the end of 2014 (except where such production is already covered by an existing sales agreement). Oil produced by Joint Venture partners in fields in which Ithaca holds an interest can be included.
The co-venturers in Jacky are Ithaca (67.275%, Operator), Dyas North Sea Ltd (22.725%) and North Sea Energy Ltd (10%). The co-venturers in Beatrice are Ithaca (74.57%) and Dyas North Sea Ltd (25.25%).
Ithaca currently anticipates that Jacky and Beatrice production will amount to approximately 10,000 bopd gross during the course of 2009.
Commenting on the agreement, Iain McKendrick (Chief Executive Officer) said, "This strategic marketing agreement with a company of such high financial and technical standing ensures that Ithaca can secure the most competitive prices for its North Sea production and access the flexibility that is associated with the volumes of oil traded by a supermajor. We look forward to working with BP to ensure the maximum return on our growing production portfolio."
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