Serica Energy has announced an agreement to acquire BP’ s full interest in two strategic central North Sea licenses: the P111 license which hosts the Culzean gas condensate field, and the adjacent P2544 exploration license.
Serica Energy’s purchasing strategies
With this transaction, Serica would take a 32% stake in Culzean, an asset operated by TotalEnergies which currently manages gas production on the UK Continental Shelf. The deal is valued at $232 million at its initial stage, is subject to a 30-day pre-emption period during which the existing partners, TotalEnergies and NEO NEXT, can exercise their right to match the offer.
The Culzean area is recognized for its high operating efficiency, with an uptime of 98% and net production for BP of about 25,500 barrels of oil equivalent per day in the first half of 2025. In addition, net 2P reserves are still estimated at 33 million barrels of oil equivalent, representing an attractive and ongoing source of cash flow for Serica.
Moreover, the field’s production potential has one of the lowest carbon footprints in the UK North Sea, with average emissions below the industry standard. The purchase includes a clause for additional payments subject to exploratory success in the P2544 license and possible changes in UK fiscal policy.
To finance the transaction, Serica plans to use a combination of cash flow generated by Culzean and available resources from its reserve-based credit facility. The company is evaluating expanding this facility to reflect its new operational scale following recent acquisitions, including the purchase of assets from Prax.
Chris Cox, CEO of Serica, emphasized that this addition will consolidate the company as a major player in UK energy production. British energy production The addition will expand the company’s asset base and strengthen its strategic position in the North Sea.
Lambert Energy Advisory is acting as financial advisor to Serica Energy on this transaction, which is expected to be completed by the end of 2025, subject to the closing of the preference period and other regulatory conditions.
Source and photo: Serica Energy
