Serica Energy to Buy BHP Stake in North Sea Fields
North Sea operator Serica Energy (SQZ.L) has struck a deal with commodities giant BHP Billiton (BHPLF) to up its stakes in two North Sea fields, taking it above 90 per cent ownership of the assets.
Under the a sale and purchase agreement (SPA), Serica UK will acquire a 16.00% interest in the Bruce field and a 31.83% interest in the Keith field and associated infrastructure (BHP Assets) from BHP Billiton Petroleum Great Britain Limited.
The structure of the Transaction is the same as the deals entered into by Serica with BP and Total whereby Serica will acquire interests variously in the Bruce, Keith and Rhum fields.
The Transaction has an effective date of 1 January 2018 and completion is subject to completion of the previously announced acquisition of interests in the Bruce, Keith and Rhum fields from BP. The Transaction is also subject to inter alia certain regulatory, government and partner consents with completion targeted for 30 November 2018.
The Transaction together with the previously announced purchases from BP and Total will result in Serica consolidating its ownership of the Bruce and Keith fields to 94.25% and 91.67% respectively postcompletion.
Following completion of the BP Transaction and acquisition of further interests in the Bruce and Keith fields from Total E&P UK Limited and transfer of operatorship of the Bruce, Keith and Rhum fields to Serica UK, the board believes the Transaction will further strengthen Serica’s position as one of the leading mid-tier independent oil and gas producers on the UK Continental Shelf and will provide incremental benefits to the Company.
Mitch Flegg, Chief Executive of Serica Energy, commented: “We are delighted to have agreed with BHP to acquire their stakes in Bruce and Keith and to be consolidating our ownership in the fields to 94.25% and 91.67% respectively. This acquisition, in addition to the previously announced transactions with BP and Total, place us in an even better position to unlock increased value from the assets and benefit from economies of scale.”
“Completion of the Transaction with BHP is anticipated to take place immediately after the respective completions of the BP and Total E&P Transactions. This will represent a major transformation for Serica in becoming one of the leading UK independent offshore operators and producers in the North Sea.”