Shell UK has transferred a 50% working interest in the Tobermory gas discovery, located in the West of Shetland basin offshore Scotland, to Ithaca Energy. The farm‑in agreement gives Ithaca a full operational role while Shell retains the remaining 50% stake and continues to operate the field.
The transaction reflects Shell’s ongoing portfolio optimisation. In recent months the company has divested non‑core North Sea assets and is concentrating capital on higher‑margin projects, including its LNG expansion. The move to sell Tobermory, a field that was relinquished in March 2021 because of its modest size, aligns with Shell’s strategy to focus on assets that can deliver stronger returns.
Ithaca Energy’s acquisition fits its growth plan in the West of Shetland basin, a region it has targeted for several years. The company has already partnered with Shell on the Tornado discovery and has expanded its portfolio through the 2024 acquisition of Eni’s North Sea assets. Executive Chairman Yaniv Friedman said the farm‑in “strengthens Ithaca’s position in a key basin that supports UK energy security and provides significant value to the UK economy.”
The deal’s financial terms were not disclosed, but the transaction is part of a broader trend of consolidation in the North Sea. Shell’s strategy includes merging its North Sea assets with Equinor to create the Adura joint venture, while Ithaca continues to pursue acquisitions that enhance its gas production profile. The Tobermory field, discovered in 1999, had been considered too small for commercial development, yet Ithaca sees potential for incremental production that can be integrated into its existing operations.
The farm‑in underscores the importance of the West of Shetland basin to both companies. For Shell, it is a step toward a leaner upstream portfolio; for Ithaca, it is a strategic foothold that complements its LNG and gas pipeline ambitions. The transaction also reinforces the UK’s energy security narrative, as both companies highlight the role of domestic gas production in supporting the national supply chain and job creation.
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