The North Sea’s leading oil producer has finalized an $11.2 billion (£8.8 billion) deal to acquire a German competitor, marking a significant expansion from its North Sea origins to becoming a worldwide oil and gas entity.
Harbour Energy PLC (LSE: HBR) is set to purchase the upstream assets of the oil and gas company Wintershall Dea, owned by chemical conglomerate BASF and investment firm LetterOne, co-founded by the sanctioned Russian tycoon Mikhail Fridman.
This acquisition will broaden Harbour’s operational footprint to include Norway, Germany, Denmark, Argentina, Mexico, Egypt, Libya, and Algeria. It also encompasses the company’s carbon dioxide capture and storage licenses in Europe.
As a result of the transaction, BASF, which holds a majority stake in Wintershall Dea, will acquire a 46.5% share in Harbour and gain the right to appoint two non-executive directors to Harbour’s board. Despite this, BASF intends to divest from the oil and gas sector over the coming years.
Linda Z Cook, the CEO of Harbour Energy, commented on the acquisition: “Today’s announcement signifies the fourth major acquisition for Harbour and the most transformative step in our endeavour to establish a large-scale, geographically varied independent oil and gas company with a unique position.”
She added that incorporating Wintershall’s assets would boost Harbour’s production, prolong its reserve life, and improve margins and cash flow, thereby supporting enhanced returns for shareholders in the long term.
