16 November 2025 , 21:48
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The sale of a North Sea oil company backed by a billionaire Conservative donor has been delayed after fraud allegations emerged involving the buyer’s owner.
A planned takeover of Deltic Energy by Viaro Energy has stalled as the North Sea Transition Authority (NSTA) continues to review the transaction, pushing it well beyond the typical three-month approval period.
Deltic, whose largest shareholder is Lord Spencer — the former Conservative Party treasurer — had told investors it expected the £6.9m deal to complete this month. The company has now warned that the timetable has slipped, with the approval process entering its fifth month.
The delay comes as Viaro’s owner, Francesco Mazzagatti, faces fraud claims in the High Court, including accusations that he stole tens of millions of pounds from his former employer to fund the expansion of his North Sea operations.
Mr Mazzagatti denies all allegations, describing them as part of a “vexatious campaign of defamation, harassment and extortion.”
The claims have complicated his efforts to expand further in the region, including a separate £500m deal to buy 11 gas fields and the Bacton gas terminal from Shell — another transaction currently in limbo.
Viaro, a relatively new entrant to the North Sea industry, produces around 25,000 barrels of oil a day. Despite its modest output, Mr Mazzagatti has become the UK’s highest-paid oil trader, earning more than £36m since 2022.
A Deltic spokesperson said the company “remains confident that relevant approvals will be forthcoming,” while Viaro said it was cooperating fully with the regulator, adding that any discussions with the NSTA were confidential.
The NSTA has not yet commented publicly on the delays.
Earlier this year, Conservative MP Andrew Bowie urged Energy Secretary Ed Miliband to scrutinise the Viaro–Shell deal in light of the fraud allegations surrounding Mr Mazzagatti.
Both Viaro and Deltic continue to insist that the takeover deal will be completed by the end of the year.
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