UK-based Harbour Energy has agreed to acquire LLOG Exploration Company in a $3.2 billion transaction, giving the company its first deepwater position in the U.S. Gulf of America and adding to its global offshore portfolio. The announcement was made on 22 December 2025.
The consideration is made up of $2.7 billion in cash and $0.5 billion of Harbour Energy voting ordinary shares. The acquisition will set up a new Gulf of America core business unit alongside Harbour’s existing activities in Norway, the UK, Argentina and Mexico. Completion is targeted for late first quarter 2026, subject to customary regulatory approvals.
Harbour said the transaction would add oil-weighted offshore production, extend reserve life and support margin improvement. The company also indicated that the deal is expected to be free cash flow per share accretive from 2027.
Within the LLOG portfolio, the main assets are operated deepwater developments in the Mississippi Canyon and Keathley Canyon areas of the Gulf of America. These assets currently produce about 34,000 barrels of oil equivalent per day and have a 2P reserves life of 22 years. Output from the portfolio is expected to approximately double by 2028.
The cash portion of the purchase price is to be funded through a $1 billion bridge facility, a $1 billion term loan and existing liquidity.
Under the agreement, LLOG Holdings LLC will receive newly issued Harbour Energy shares valued at $0.5 billion. On completion, it is expected to hold around 11% of Harbour’s voting share capital, with the final percentage subject to adjustment under Harbour’s ongoing share buyback programme.
Harbour stated that the acquisition supports its investment-grade balance sheet profile. The company pointed to greater scale, increased reserves and higher free cash flow as factors underpinning its expectations for long-term shareholder returns.
Once the deal closes, LLOG will become Harbour Energy’s Gulf of America business unit and will continue to operate under the LLOG name.
Chief executive Linda Z Cook said Harbour views LLOG as a combination of high-quality deepwater oil assets and an experienced team, and that the portfolio is expected to strengthen Harbour’s production profile, increase operational control, extend reserve life and improve margins.
Chief financial officer Alexander Krane noted that the transaction follows recently announced agreements to acquire Waldorf in the UK and to divest assets in Indonesia, which together materially enhance Harbour’s free cash flow outlook. He added that, consistent with previous acquisitions, the company’s priorities after completion will include the safe integration of assets and people and maintaining a resilient portfolio.
