Serica Energy PLC, London, has entered agreements to further increase its interests in Bruce and Keith natural gas and condensate fields in the UK North Sea.
The company also said it has satisfied conditions of a license from the US Office of Foreign Assets Control allowing operations to continue at nearby Rhum field despite a 50% interest subject to renewed US sanctions against Iran held by a subsidiary of National Iranian Oil Co. (OGJ Online, Oct. 9, 2018). The license requires benefits accruing to the interest of the subsidiary, Iranian Oil Co. (UK) Ltd., to be held in escrow while sanctions are in effect.
Acquisition of the license was a condition of Serica’s November 2017 agreement to acquire BP PLC’s 50% interest in the field in a deal that also covers BP’s Bruce and Keith interests.
Serica now has agreed to buy a 16% interest in Bruce field and a 31.83% interest in Keith field from BHP Billiton Petroleum Great Britain Ltd. for an initial cash payment of £1 million, to be adjusted for working capital and 40% of post-tax cash flows from the effective date of Jan. 1, 2018. BHP retains liability for the costs of decommissioning facilities and wells now in place, subject to adjustments.
Last August, Serica agreed to acquire Total SA’s interest in Bruce and Keith fields, subject to completion of the BP deal.
Separately, Serica on Nov. 6 said it had agreed to acquire a 3.75% interest in Bruce field and an 8.33% interest in Keith field from Marubeni Oil & Gas (UK) Ltd.
Unlike the earlier transactions, the Marubeni deal transfers decommissioning obligations to Serica, which will receive a cash consideration from Marubeni with no deferred or contingent consideration.
The Marubeni transaction depends on completion of the BP acquisition.
Completion of all the transactions will make Serica’s interests 98% in Bruce field and 100% in Keith field. It will operate those fields as well as Rhum.
