A New Summit for Low Carbon Energy

Source Press Release
Company Sumitomo CorporationDelek Group Ltd.Ithaca Energy Inc. 
Tags Corporate Deals, Deals, Upstream Activities
Date March 28, 2022

Summit E&P Ltd (“SEPL”) is pleased to announce significant steps forward in the transition of its shareholder Sumitomo Corporation towards lower carbon energy systems. Upstream oil and gas assets will be divested while a new sister company to SEPL has been established as a 100% subsidiary of  Sumitomo Corporation – Summit Energy Evolution Ltd (“SEEL”).

The new entity – SEEL – will take over SEPL’s existing low carbon energy businesses, including the leadership of the Bacton Energy Hub Supply SIG and participation in other Bacton SIGs. The aim is that SEEL will become the vehicle for Sumitomo Corporation’s future interests in hydrogen and other low carbon energy businesses in the UK, particularly those related to repurposing and decarbonisation of existing oil and gas infrastructure, and utilisation of Sumitomo’s and SEPL’s existing skills and experience in subsurface, engineering, offshore and renewables technologies.

SEEL has already been established and is expected to become fully operational early in Q2, at which time further announcements will be made about the new company, its personnel and its activities.

Sumitomo’s path to lower carbon energy will continue with the divestment of SEPL, where a Sales and Purchase Agreement was signed on 28th February by Sumitomo Corporation and Ithaca Energy (UK). Ownership of SEPL will transfer to Ithaca on completion, including all upstream assets, but excluding activities related to low carbon energy systems. The deal is expected to be completed in Q2 2022.

John Austin, CEO of Summit E&P Ltd, stated:
“Summit E&P has been refocussing its interest over the last two years, away from fossil fuels and towards the new low carbon energy systems which are rapidly developing in the UK. It is sad Sumitomo departs the UK upstream oil and gas sector after so long, but I am pleased to have delivered excellent returns to our shareholder consistently for many years. The establishment of our sister company Summit Energy Evolution will increase that focus, while retaining knowledge and experience from our UK offshore oil and gas heritage built up over the last 30 years.

SEEL – the “new” Summit – will take a leading role in the development of new Hydrogen Energy systems in the UK, including Bacton, and will become an important component of establishing new long-term sustainable low carbon energy businesses for its shareholder Sumitomo Corporation, in line with corporate directives to achieve net zero by 2050”

Source: EvaluateEnergy® ©2022 EvaluateEnergy Ltd