London — Harbour Energy PLC announced Monday it has entered into an agreement to acquire LLOG Exploration Company LLC for $3.2 billion, marking its strategic entry into the deepwater US Gulf of America.
The acquisition consists of $2.7 billion in cash and $0.5 billion in Harbour’s voting ordinary shares. The deal is expected to close in late Q1 2026, subject to customary closing conditions.
The transaction will establish Harbour as a leading player in the Gulf of America, adding to its existing core business units in Norway, the UK, Argentina and Mexico.
LLOG currently produces 34,000 barrels of oil equivalent per day with operating costs of $12 per barrel. The acquisition adds 271 million barrels of oil equivalent in 2P reserves, increasing Harbour’s reserves by 22% and extending its reserves life from 7 to 8 years.
“Today’s announcement delivers on Harbour’s long-standing ambition to establish a presence in the deepwater Gulf of America,” said Linda Z Cook, CEO of Harbour. “With LLOG, we found the right combination of high-quality assets and a talented team, providing a strong strategic and cultural fit with our company.”
Following completion, LLOG will serve as Harbour’s new Gulf of America business unit, incorporating the LLOG name to preserve its history and reputation in the region.
The transaction is expected to be free cash flow per share accretive from 2027. Harbour intends to move to a payout ratio approach for its distributions policy in 2026, incorporating a base dividend and share buybacks.
LLOG Holdings LLC will own 11% of Harbour’s listed voting ordinary shares upon completion, with 70% of these shares subject to a one-year lock-up period.
*Maria Ponnezhath – Investing.com
