December 27, 2025 — London-listed oil and gas producer Harbour Energy plc has agreed to purchase U.S. deepwater operator LLOG Exploration Company LLC in a strategic transaction valued at $3.2 billion. The deal, announced December 22, 2025, combines approximately $2.7 billion in cash and $500 million in Harbour shares and represents a significant step in Harbour’s global growth strategy.
The acquisition will give Harbour a substantial foothold in the deepwater U.S. Gulf of Mexico — a prolific basin long coveted by international explorers — and establishes LLOG as Harbour’s new core operating unit in the region.
Harbour is already one of the largest independent producers in the world, producing over 450,000 barrels of oil equivalent per day. About 40% of its production is European gas, 20% is international gas and the remaning 40% are liquids
LLOG’s portfolio includes key offshore assets such as Who Dat in Mississippi Canyon and the Buckskin and Leon-Castile fields in Keathley Canyon, with more than 80 deepwater leases spread across the Gulf. Production from these assets is projected to double by 2028, supported by promising Lower Tertiary Wilcox plays, existing infrastructure and ongoing drilling opportunities.
Under the terms of the deal, Harbour will finance the cash portion through a combination of an underwritten bridge facility, a term loan and its existing liquidity, while issuing nearly 175 million new Harbour voting shares to LLOG’s owners. Upon closing — expected in late first-quarter 2026 subject to regulatory clearances — LLOG Holdings LLC is projected to hold about 11% of Harbour’s voting ordinary shares, with existing shareholders owning roughly 89%.
LLOG currently produces roughly 34,000 barrels of oil equivalent per day, and the transaction is expected to boost Harbour’s overall output as part of a broader plan to reach around 500,000 barrels of oil equivalent per day by the end of the decade. The acquired assets also bring sizeable 2P reserves — about 271 million barrels of oil equivalent — and a long reserve life backed by high-margin production.
Harbour says the acquisition will extend reserves life, enhance margins and materially increase cash flow, with the deal anticipated to be free cash flow per share accretive starting in 2027.
This transaction marks one of Harbour’s most significant purchases outside its traditional North Sea base, complementing recent deals — including acquisitions in Norway, Argentina and Mexico — and follows Harbour’s broader diversification efforts after its transformational Wintershall Dea asset purchase.
Harbour has also stated its intention to shift to a payout-ratio distribution policy in 2026, blending a base dividend with share buybacks to align more closely with U.S. and international peers.
Management has emphasized that LLOG’s experienced team, established infrastructure and strong regional reputation make it a good cultural fit, and that preserving the LLOG name will help retain its identity and legacy in the Gulf.
