Harbour to enter US Gulf with LLOG acquisition

UK-based Harbour Energy (HBRIY) announced over the Christmas period that it had agreed to acquire LLOG Exploration from LLOG Holdings for $3.2bn. The transaction will mark Harbour’s entry into the US Gulf of Mexico when it closes, which is anticipated to occur late in the first quarter of 2026.

In a December 22 statement, Harbour described LLOG as “one of the most successful, privately held operators” in the Gulf, which it referred to as the Gulf of America in line with an executive order signed by US President Donald Trump upon his return to office last year. It described LLOG’s holdings as “high-quality, long-life, oil-weighted assets.

The company’s operations are estimated to produce 34,000 barrels of oil equivalent per day (boepd), it noted, with operating costs of $12 per boe. LLOG’s production is expected to roughly double by 2028, Harbour added, saying this anticipated doubling was underpinned by a “leading” position in the Lower Tertiary Wilcox play.

In particular, Habour pointed to the Who Dat project in the Mississippi Canyon region of the Gulf and to Buckskin and Leon-Castile in the Keathley Canyon region as being among LLOG’s key assets.

The acquisition is anticipated to support Harbour in reaching its production target of 500,000 boepd by the end of the decade. It is expected to add proven and probable (2P) reserves of 271mn boe, raising Harbour’s 2P reserves by 22% overall. In addition, it will extend the lifespan of Harbour’s 2P reserves from 7 years to 8 years, the company said, and increase its oil weighting.

The acquisition comprises $2.7bn in cash and $500mn of Harbour’s voting ordinary shares. It is set to add another core business unit for the company, adding to existing units in Norway, the UK, Argentina and Mexico.

The deal comes shortly after Reuters reported in early December that Shell was in “advanced” talks to buy Harbour. Two sources familiar with the matter said at the time that a deal was seen as close, while also cautioning that it was not guaranteed. Indeed, that deal did not materialise in the end.

Harbour’s CEO, Linda Cook, pointed to her company’s “long-standing ambition” to establish a presence in the deepwater Gulf. “The transaction positions us as a leading player in a region with well-established infrastructure, a supportive fiscal and regulatory environment and opportunities for additional growth,” she stated.

The deal also comes less than two weeks after Habour announced it had agreed to acquire the subsidiaries of Waldorf Energy Partners and Waldorf Production for $170mn, with operations in the UK North Sea.