Ithaca Energy commits to 2026/27 start for Rosebank oil field despite legal challenges

Ithaca Energy has announced that production at the Rosebank oil field will commence in 2026/27, despite a significant court ruling in January which declared the approval of the Scottish oil field as unlawful.

The London-listed company is currently working closely with regulators and the Department for Energy Security and Net Zero (DESNZ) to prepare a revised application, as reported by City AM.

The firm anticipates the total capital costs for the project to be between $190m and $230m (£147m to £178m), after an expenditure of approximately $198m in 2024.

Ithaca holds a 20% stake in Rosebank, while the remaining share is owned by Norway's Equinor.

On Monday, the Aberdeen-based company revealed its full-year results, announcing an interim dividend of $200m for its investors. However, profits saw a significant drop from $292.6m to $153.2m due to substantial increases in the Energy Profits Levy (EPL), also known as the windfall tax.

Basic earnings per share also decreased from ¢29.1 to ¢13.2. The energy company attributed the fall in both pre-tax earnings (EBITDAX) and revenue to lower production volumes and realised prices compared to 2023.

Looking forward, the North Sea oil and gas company predicts increased production in 2025, bolstered by its recent acquisition of Eni's UK assets worth $975.8m.

The company expects production to range between 105 to 115 kboe/d (barrels of oil equivalent per day).

"2024 was a transformational year for Ithaca Energy, having made material progress across our strategic objectives creating value organically and inorganically," said Yaniv Friedman, the executive chairman.

"We enter our next era of growth, with a proven strategy and a range of strategic options for growth.