Serica Energy plc has signed a preliminary deal to buy a 32% non-operated interest in the UK’s top producing gas field from the supermajor BP, the independent UK oil and gas producer said on Monday.
Serica has signed an agreement to buy BP’s stake in the Culzean gas condensate field in the UK Central North Sea and an exploration license adjacent to the license containing the Culzean field.
Culzean, operated by TotalEnergies, came on stream in 2019 and is currently the largest single producing gas field in the UK North Sea.
However, the proposed acquisition of BP’s stake by Serica is subject to a pre-emption period, per the terms of the joint operating agreement between the Culzean field partners. The pre-emption period will run for 30 days, with each of the Culzean field partners (TotalEnergies, 49.99%, and NEO NEXT, 18.01%) having the option to acquire BP’s stake in the licenses on the same terms as those agreed by Serica.
The transaction proposed by Serica would have an economic date of September 1, 2025 and an upfront cash consideration of $232 million.
“Should this transaction complete, it would deliver a step-change for Serica, adding material production and cash flows from the largest producing gas field in the UK,” Serica’s CEO, Chris Cox, said in a statement.
Culzean is currently the largest gas field on the UK Continental Shelf by production, with production net to BP of about 25,500 boepd in the first half of 2025.
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Serica has been expanding its footprint in the UK North Sea with the recent acquisition of assets from Prax Group that would give it stakes and operatorships of additional oil and gas fields. Following the deal with Prax, Serica will have a 40% operated interest in the Greater Laggan Area (GLA), a 10% interest in the Catcher Field, a 5.21% interest in the Golden Eagle Area Development (GEAD), and a 100% interest in the Lancaster field.
BP, for its part, started up last week the Murlach oil and gas field in the UK North Sea, the sixth major project the supermajor has launched so far this year, as part of its goal to have ten new oil and gas fields operational globally by 2027.
By Tsvetana Paraskova for Oilprice.com
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