The Ithaca Energy PLC (LON: ITH) share price rose 8.52% after announcing that the company, together with its operating partner Equinor, had finally decided to move forward with Phase 1 of the Rosebank development on the UK Continental Shelf after gaining approval from the North Sea Transition Authority (NSTA) to proceed with the development.
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Ithaca has a 20% working interest in the Rosebank development, with Equinor owning the remaining 80%. The two companies have agreed to invest about $3.8 billion into the development, estimated to contain up to 300 million barrels of oil from phases 1 and 2. Phase 1 is expected to contain 245 million barrels of oil.
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The Rosebank field will be constructed with subsea wells connected to a redeployed Floating Production Storage and Offloading vessel (FPSO), with both companies looking forward to starting the first production in 2026-2027. The development is expected to produce over 21 MMSCF of natural gas daily, which can power Aberdeen City daily.
The Rosebank development has been designed to lower carbon emissions under the North Sea Transition Deal. The companies intend to use an FPSO that is electrified as opposed to those that use diesel power for their operations.
Equinor and Ithaca Energy are working with the government and industry stakeholders to arrive at a solution that will supply power from the shore to the Rosebank field to reduce carbon emissions from production.
The project’s development is expected to generate about £8.1 billion of total direct investment, of which 78% will be invested in UK-based businesses. Some contracts have already been awarded to UK firms.
Gilad Myerson, Ithaca Energy’s Executive Chairman, commented: “We are delighted to announce the decision to move forward with the Rosebank development alongside Equinor. Rosebank stands as the largest undeveloped field in the UK, and with the receipt of development consent from the NSTA, we are now poised to embark on a journey that will not only provide critically important domestic energy but also ignite substantial economic impact. The Rosebank project will create thousands of jobs and contribute significantly to securing the UK's energy needs for many years to come.”
Ithaca Energy (ITH) share price.
The Ithaca Energy share price rallied 8.52% to trade at 178.40p, from Tuesday’s closing price of 164.40p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.