U.K.'s Harbour Energy Buys GOM Producer LLOG for $3.2 Billion

Written by Paul Wiseman for IIR News (Sugar Land, Texas)

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Summary

U.K.-headquartered Harbour Energy agreed to buy Louisiana-based LLOG and its Gulf of Mexico assets. It will be the first Gulf opportunity for Harbour, which is active in the North Sea, Argentina, Mexico and elsewhere.

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Harbour Wades into Deep Waters

Harbour Energy (Edinburgh, Scotland) announced last week its purchase of LLOG Exploration (Covington, Louisiana) for $3.2 billion. Harbour, founded in 2014, is a large independent producer with operating assets in Norway, the U.K., Argentina and Mexico. It is also involved in Southeast Asia and Africa.

Harbour's total 2025 production averages 460,000 to 475,000 barrels of oil equivalent per day (BOE/d), and total proven/probable (2P) reserves are about 1.25 billion barrels of oil equivalent (BOE).

LLOG's U.S. Gulf of Mexico assets are in the deepwater Gulf, producing about 34,000 BOE/d. Its 2P reserves are 271 million BOE.

Of the $3.2 billion offered by Harbour, $2.7 billion will be in cash, with $500 million in Harbour voting ordinary shares of stock. Harbour has stated that the acquisition will add oil-weighted production to their portfolio and improve margins for its operations.

The transaction is subject to regulatory approval and is expected to close late in the first quarter of 2026. LLOG will retain its name, and current Chief Executive Officer Philip LeJeune is expected to continue in his role.

What Harbour is Getting in LLOG

About 90% of LLOG's production comes from three operated positions. Comments below are from Harbour:

Buckskin, Keathley Canyon:

• First production 2019
• H1 2025: 10,000 BOE/d; four wells online
• Planned new wells more than double future production
• Industrial Info reports that total reserves there could be 5 billion barrels of oil

Who Dat, Mississippi Canyon:

• H1 2025: 14,000 BOE/d
• Upside potential in deeper reservoirs below producing Who Dat horizons

Leon-Castile, Keathley Canyon:

• The newest developments by LLOG, with first production in October 2025. The relative proximity of Leon and Castile allows for sharing of production facilities and co-development
• Start up early Q4 2025 with current rates of 14,000 BOE/d
• Long term development opportunity with significant infill drilling inventory
• Potential field extension into yet untested fault block (Leon East Fault Block)

Industrial Info is tracking a significant list of LLOG Gulf operations. Subscribers can learn more from a detailed company profile.

Growth Mentality on Both Sides

Harbour expects LLOG's production to double by 2028, helped by the company's pipeline of development projects and exploration prospects, particularly in the Wilcox play.

Both companies have been actively expanding in recent years. Harbour's H2 2024 $11.2 billion acquisition of Wintershall Dea's upstream assets expanded the company's operations in Norway and Argentina. And earlier in December, the company announced an agreement to purchase substantially all the assets of Waldorf Energy Partners Limited and Waldorf Production Limited, for $170 million. These assets are primarily in the North Sea, expanding Harbour's interest in the Catcher field from 50% to 90%, and adding a 29.5% non-operated interest in the Kraken field in the Northern North Sea.

LLOG has been active in Gulf of Mexico lease purchases, acquiring rights to 41 deepwater blocks in federal lease sales in 2024. That purchase encompassed approximately 236,000 acres in the East Breaks and Alaminos Canyon areas of the deepwater Gulf region. LLOG owns 100% working interest of all 41 blocks and is the operator there.

By the Numbers

• $3.2 billion: Sale price of LLOG to Harbour Energy
• 34,000 BOE/d: LLOG's 2025 average Gulf production
• 271 mmboe: LLOG's proven/probable reserves

Behind the Deal

LLOG was founded in1977 by Gerald Boelte. Boelte died in an automobile accident on February 24, 2024, at age 77. Soon thereafter the family-owned company announced it would seek a buyer who would maintain the company's family culture, headquarters, and employees.

Earlier this month, IIR News quoted a Reuters report that Shell plc (London, England) was at that time considering buying LLOG for about $3 billion, a deal that did not materialize.

Key Takeaways

• Harbour, a large worldwide independent producer in the North Sea, Argentina, and Mexico, will now have significant assets in the U.S. Gulf of Mexico.
• LLOG, also an independent, went up for sale following the 2024 passing of its founder.
• Pending regulatory approval, the transaction could be completed by late Q1 2026.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).