BP agreed to sell stakes in 3 North Sea fields to Serica Energy

Oil major BP reported on November 21, 2017, that it will sell its interests in 3 North Sea fields to Serica Energy.

The package includes the Bruce, Keith and Rhum fields, 3 bridge-linked platforms and associated subsea infrastructure.

Serica will pay £12.8 million ($16.9 million) upfront, in addition to a share of cash flows over the next 4 years.

Serica will also cover 30% of BP’s post-tax decommissioning costs and make several contingent payments based on the performance of the assets and future oil prices.

Overall, BP expects to net £300 million from the deal. The sale is expected to go through in the 3rd quarter of 2018.

Bernard Looney, BP chief executive, upstream, said: «This is an example of BP’s upstream strategy in action – refreshing our portfolio and focusing our activity on assets which will add most value over the long-term. We remain committed to the North Sea and continue to invest. We expect our production there to double to around 200,000 barrels equivalent a day by 2020 through new projects like Quad 204 and Clair Ridge».

Tony Craven Walker, Serica’s CEO, said the deal would establish Serica as a leading British independent oil and gas company with the scale, balance sheet and operating capability to prosper in the North Sea’s rapidly changing upstream oil and gas industry.

As part of the agreement, Serica will acquire a 36 % interest in Bruce, a 34.83 % interest in Keith and a 50 % interest in Rhum (collectively the BKR assets).