Serica Energy to snap up BP North Sea assets

(Sharecast News) - Serica Energy has agreed to snap up two BP interests in the North Sea, the oil and gas producer confirmed on Monday, sending shares in the AIM-listed firm higher. Under the terms of the deal, Serica will acquire BP's 32% non-operated working interest in the P111 licence, which contains the Culzean gas condensate field, and the adjacent P2544 exploration licence for an upfront cash consideration of $232m.

Two further cash payments are due dependent on successful results and production from the P2544 licence, and on changes to the UK ring-fence fiscal regime.

The deal is also dependent on TotalEnergies and Neo Next - the two other Culzean field partners - not putting in their own offer for the BP licences within the next 30 days.

Under the terms of the joint operating agreement, each partner has the option to acquire BP's stake on the same terms as agreed by Serica.

Chris Cox, chief executive, said: "Should this transaction complete, it would deliver a step-change for Serica, adding material production and cash flow from the largest producing gas field in the UK.

"Culzean is a world-class asset, delivering gas from a modern platform with exceptionally high uptime and low emissions."

As at 0930 BST, shares in Serica were up 9% at 195p.