BP, Serica strengthen ties following Erskine sale

Serica Energy has agreed to buy BP’s 18% interest in two UK North Sea blocks containing the producing Erskine gas/condensate field for $11.1 million plus shares in Serica.

Offshore staff

LONDON – Serica Energy has agreed to buy BP’s 18% interest in two UK North Sea blocks containing the producing Erskine gas/condensate field for $11.1 million plus shares in Serica.

Chevron operates the field, originally developed by Texaco using a normally unmanned wellhead platform, in blocks 23/26a (Area B) and 23/26b (Area B). Production in 1Q 2014 averaged 10,092 boe/d.

Erskine exports liquids to the BG-operated Lomond complex for onward transport via the Forties pipeline to Cruden Bay, Scotland. The gas is delivered through the CATS system to Teesside, northeast England.

Serica also has been working to develop itsColumbus gas/condensate field via the Lomond platform.

The deal should net the company production this year of around 1,234 boe/d, after taking into account shutdowns for planned maintenance. BP will pay Serica’s share of decommissioning costs up to a fixed amount.

BP, by taking a stake in Serica, strengthens its position offshoreNamibia where the two companies are already partners, and off Morocco where Serica has interests in various blocks.

06/17/2014

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