Published by Global Banking & Finance Review®
Posted on December 22, 2025
2 min readLast updated: January 20, 2026
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Harbour Energy enters the Gulf of Mexico with a $3.2 billion acquisition of LLOG, enhancing its oil production capabilities.
Dec 22 (Reuters) - North Sea-focused Harbour Energy said on Monday it would buy deepwater oil and gas exploration and production company LLOG Exploration for $3.2 billion, marking its entry into the U.S. Gulf of Mexico.
The deal will consist of $2.7 billion in cash and $500 million in Harbour's voting ordinary shares, the company said in a statement.
The Gulf of Mexico remains a prime target for oil majors such as BP, Shell and Chevron because of its vast deepwater reserves, easy access to U.S. infrastructure and long-term production potential.
Its appeal has been boosted by President Donald Trump's administration's promotion of oil and gas exploration over investment in renewable energy.
Earlier this month, LLOG was one of the winners at the U.S. government's first sale of oil and gas drilling rights in the Gulf of Mexico since 2023.
The deal will help Harbour's overall production reach about 500,000 barrels of oil equivalent per day by the end of the decade, and be accretive to free cash flow from 2027, the company said.
On completion, LLOG's parent firm, LLOG Holdings LLC, will own 11% of Harbour's listed voting ordinary shares, with current shareholders holding the remaining 89%, it added.
(Reporting by Ankita Bora in Bengaluru; Editing by Subhranshu Sahu and Emelia Sithole-Matarise)
Harbour Energy is a North Sea-focused oil and gas company that recently announced its acquisition of LLOG Exploration, marking its entry into the U.S. Gulf of Mexico.
LLOG Exploration is a deepwater oil and gas exploration and production company based in the Gulf of Mexico, recently acquired by Harbour Energy for $3.2 billion.
Free cash flow is the cash generated by a company after accounting for capital expenditures. It is an important measure of financial performance and indicates the company's ability to generate cash for shareholders.
Deepwater oil and gas exploration involves searching for and extracting hydrocarbons from underwater reserves located in deep ocean waters, typically requiring advanced technology and significant investment.
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