Serica agrees to terms with bp for provisional North Sea Culzean farm-in
Serica Energy has agreed to purchase bp’s 32% interests in the P111 and P2544 licenses in the UK central North Sea, subject to the waiver of pre-emption rights.
P111 contains the TotalEnergies-operated high-pressure, high-temperature Culzean gas condensate field, currently the UK’s largest producing gas field, according to Serica, while P2544 is an adjacent exploration license.
Under the joint operating agreement between the Culzean partners, the pre-emption period for the transaction runs for 30 days, with TotalEnergies (49.99%) and NEO NEXT (18.01%) each having the same option to acquire bp’s stakes on similar terms.
Estimated upfront cash consideration for the deal is $232 million, subject in part to working capital adjustments. The terms include a provision for two further cash payments contingent on a successful outcome and production from a large exploration prospect on P2544 licence; and future changes to the UK ring-fence fiscal regime.
Culzean, discovered in 2008 in the East Central Graben area, came onstream in 2019 via a bridge-linked three-platform complex and an FSO for condensate storage. The net production to bp was about 25,500 boe/d in the first half of this year, with an operating efficiency of 98%.
The development also has one of the lowest carbon footprints in the UK North Sea, Serica added, with emissions below the sector’s 20 kg CO2/boe average.
Serica recently announced an agreement to acquire Prax Energy, gaining operatorship of the Greater Lagga Area gas-condensate fields and associated offshore/onshore infrastructure.
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