Exclusive: North Sea oil producer Harbour in merger talks with Talos -sources

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Britain's largest North Sea oil and gas producer, Harbour Energy , is in talks to merge with Gulf of Mexico peer Talos Energy , four people familiar with the matter said on Tuesday.

The move would offer Harbour an opportunity to list in New York after CEO Linda Cook decided to scale back North Sea spending and diversify its operations overseas after Britain imposed a windfall tax on oil and gas producers last year in the wake of a surge in energy prices.

Listing in New York could offer Harbour access to oil and gas-focused investors and banks, the sources said. Houston-based Talos has said it expects to produce up to 71,000 of barrels of oil equivalent per day in the Gulf of Mexico in 2023. Harbour Energy expects to produce up to 200,000 boed in 2022, largely from Britain's North Sea.offshore Mexico, where Harbour also holds a 12.4% interest.in 2022 as a result of a $1.5 billion non-cash deferred tax charge associated with the windfall tax, which is set to apply until 2028.

"Given the fiscal instability and outlook for investment in the country, it has also reinforced our strategic goal to grow and diversify internationally."

 

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