Harbour Energy enters US offshore market, finalises US$3.2Bn acquisition of LLOG

Harbour Energy has completed the acquisition of LLOG Exploration Co for US$3.2Bn, signalling its strategic entry into the US offshore oil and gas market.

"Through LLOG, Harbour gains a fully operated, oil-weighted portfolio and an exceptional team in one of the world’s most prolific oil and gas basins. LLOG adds high-margin, long-life assets and a deep inventory of high-return drilling opportunities," a statement from Harbour Energy said.

LLOG averaged 36,000 barrels of oil equivalent per day (boepd) during 2025, with the company pointing to strong production from its Who Dat and Buckskin hubs and the start-up of operations at Leon-Castille in October. Harbour Energy said LLOG’s production is on track to increase to 65,000-70,000 boepd by 2028.

Harbour financed the acquisition in cash and shares, using US$2.7Bn in cash and issuing around 175M new Harbour voting ordinary shares to LLOG Holdings with a total share value of US$500M. The cash consideration included a US$1.0Bn bridge facility, a US$1.0Bn three-year loan and US$0.7Bn in liquid cash.

The nearly 1.58Bn voting ordinary shares in Harbour are owned approximately 89% by Harbour’s legacy shareholders, including 42% by BASF. Of the shares created for LLOG in the acquisition, 70% are subject to a one-year lock-up.

"This marks another important step in Harbour’s journey by establishing a leading position in the US Gulf of America. We are excited to welcome our new colleagues and look forward to building on their strong heritage and proven exploration and development capabilities in the region. With the combined strengths of our teams, the quality of the assets, and the depth of opportunities ahead, we are well-placed to deliver significant value for our shareholders," Harbour Energy chief executive Linda Cook said.

Headquartered in London, UK, Harbour Energy produces more than 450,000 boepd, with significant production in Norway, the UK, Germany, Argentina and North Africa. Deepwater oil and gas exploration and production company LLOG was founded in 1977 and is headquartered in Covington, Louisiana. The company has drilled more than 300 wells in the US Gulf of Mexico.