Serica Energy acts to strengthen UK North Sea gas production

Serica Energy has agreed to buy a package of interests in gas-producing fields in the UK southern North Sea from Spirit Energy for $74 million.

The acquisition, to be conducted by two of Serica’s new subsidiaries following its takeover of Prax Upstream, should complete during the first half of 2026.

Spirit Energy has also agreed to retain decommissioning liabilities for the operated fields involved, which Serica says represent more than 75% of the overall decommissioning liability.

The transaction should increase Serica’s UK North Sea production by about 13,500 boe/d.

CEO Chris Cox said the 15% share the company would gain in the Ithaca-operated Cygnus Field would be one of the stand-out features of the deal, “given its high uptime, low emissions and low operating costs." 

He added, “There is also the potential for further infill drilling opportunities across the portfolio, most significantly at Cygnus, where drilling is ongoing.” 

Cygnus extends across blocks 44/11a, 44/11b and 44/12a in water depths of 15 m to 25 m. The mid-life field, which came onstream in 2016, currently has 11 wells in service.

The first of the four firm wells in the current infill campaign is now on production, with drilling of the second well underway. There is potential for further development drilling beyond the four approved wells, Serica added.

Also part of the package are the Greater Markham Area fields on the UK/Dutch North Sea median line: Markham (37.5%), Chiswick (100%), Grove, (92.5%), Kew (100%), all in UK waters, and the TotalEnergies-operated J3C (4%) on the Dutch side.

Subsea tiebacks take gas from all of the fields to the operated Markham J6A platform, with production then exported via the Wintershall-operated K/13 facilities and into the 160-km long Westgas transport pipeline system to Den Helder for separation, conditioning and distribution.

Most of the overall 7,000 boe/d net to Spirit Energy in the first half of 2025 came from Chiswick. Here, as at Grove and Kew, Serica sees further infill/enhancement opportunities.

Another gain is a 25% share of the Ineos Energy-operated tight gas field Clipper South in blocks 48/19 and 48/20, 100 km east of the Lincolnshire coast.

Production comes from four long, horizontal, multi-fractured wells connected to a normally unattended installation and controlled from the Shell-operated Clipper center. Gas is exported to the Bacton Gas Terminal to the south on the Norfolk coast. 

Various other drilling opportunities have been identified that could extend Clipper South’s productive life.

In addition, Serica would assume Spirit’s 8.4% interest in the Galleon Field east of Clipper. Operator Shell has agreed to sell to Viaro Energy, along with the remainder of Shell’s southern UK North Sea portfolio.

Also part of the deal with Spirit are 54% and 90% interests in the single-well Eris and Ceres subsea tiebacks, which are due to cease production in 2026-27.

In the UK northern North Sea, EnQuest said in an operations update that it plans a new six-well program on the Magnus Field that will start in first-half 2026.