London-listed junior Deltic Energy has publicly criticised the UK's North Sea Transition Authority (NSTA) for a protracted regulatory delay in approving its takeover by Viaro Energy. The deal, first announced in August of the previous year and valued at £6.9 million, was recommended by Deltic's board to shareholders as a necessary move to avoid administration and fund its share of development costs for the Shell-operated Selene gas discovery, citing an uncertain UK fiscal environment.

Regulatory Delay and Criticism

Deltic states that the NSTA's approval process for the change of control has now stretched into its eighth month, nearly three times longer than the regulator's typical three-month guideline. The company contends this creates "material market uncertainty" and an "unnecessarily difficult" investment environment. Despite what Deltic describes as "intensive interactions" between the NSTA and Viaro in prior years and the "simple nature" of the current transaction, the regulator has not provided a conclusion and is reportedly unable to commit to a firm timeline, with a decision potentially delayed until late March 2026. Deltic also notes the NSTA has repeatedly refused to meet with the company to explain the situation.

Context of the Parties Involved

The delay occurs against a backdrop of challenges for Viaro Energy. The company, which has sought to expand its UK North Sea portfolio since 2020, recently saw a separate deal to acquire Shell and ExxonMobil’s Southern North Sea assets collapse after over 18 months of delays, attributed by all parties to changing commercial conditions. Furthermore, in December, a UK Court of Appeal ruled against Viaro Energy and its chief executive in a case concerning a breach of insolvency law related to a dividend payment. A separate case involving fraud allegations is ongoing in the UK courts.

Official Responses

The NSTA declined to comment on the specific case, stating it does not comment on commercial matters relating to licensees. A spokesperson for Viaro affirmed the company's continued commitment to the Deltic deal, stating it has provided all required information and remains engaged in constructive dialogue with the regulator.