Serica set to join North Sea Buchan development project

Nov. 28, 2023
Jersey Oil & Gas has agreed to farm out a 30% interest in the Greater Buchan Area licenses in the North Sea to Serica Energy.

Offshore staff

LONDON Jersey Oil & Gas (JOG) has agreed to farm out a 30% interest in the Greater Buchan Area (GBA) licenses in the UK central North Sea to Serica Energy.

On completion, JOG will retain a 20% stake in the licenses and fully carry on the capex needed for development work to bring the Buchan Field back into production.

The transaction, which has to be ratified by the North Sea Transition Authority, is on identical pro-rata terms to a previously completed deal between JOG and NEO Energy earlier this year, which led to NEO becoming the development operator.

Following the recent acquisition of the Western Isles FPSO from Dana Petroleum, all main components of the Buchan redevelopment plan have now been defined, JOG said.

The field will produce through up to five subsea production wells supported by two water injectors. All will be tied back to the FPSO, which will undergo modifications to be "electrification ready" prior to redeployment at the Buchan Field, with access to a potential floating wind power development in the area.

NEO estimates total capex for the redevelopment at £850 million to £950 million ($1,067-$1.193 billion) to achieve production of more than 70 MMboe, with peak rates of about 35,000 boe/d.

The partners expect approval of the Buchan Field development plan in 2024 and are targeting late 2026 for first production, followed by subsequent phases involving the tieback of the Verbier and J2 discoveries within the GBA license area.

NEO has contracted Apollo to perform a FEED study covering required repairs and modifications to the FPSO, late-life extension procedures and requirements for integrating future offshore electrical infrastructure into the vessel.