ADDING VALUE TO QUALITY PRODUCING ASSETS

Serica has agreed to take over BP’s interests in the Bruce (36%), Keith (34.83%) and Rhum (50%) fields, with BP retaining 1% of Bruce. Serica will also be taking over operatorship of Bruce from BP. Collectively, these assets recorded average production of 18,500 boepd net to BP in H1 2017 and are estimated to contain net 2P reserves of 47 mmboe as of 01.01.18, of >85% gas. Completion of the transaction is expected to occur in mid 2018.

Bruce Keith Rhum
Bruce Keith Rhum

Bruce

Partners (post completion): Serica (operator) 36%, Total 43.25%, BHP Billiton 16%, Marubeni 3.75%, BP 1%

The Bruce gas field is a late life asset located in blocks 9/9a, 9/8a and 9/9b in the Northern North Sea.

  • Producing via 21 wells with aggregate average production of 4,400 boepd net to BP in H1 2017*
  • Gas exported via the Frigg pipeline to the St Fergus terminal and liquids exported via the Forties Pipeline System
  • Comprised of three linked platforms:
    • Production Utilities Quarters Platform with quarters for crew (max. 168 persons)
    • Drilling Platform
    • Compression / Reception Platform which hosts reception and compression facilities

Keith

Partners: (post completion): Serica (operator) 34.83%, Total 25%, BHP Billiton 31.83%, Marubeni 8.34% Rhum

The Keith oil field is located in block 9/8a in the Northern North Sea, 6.4 km to the southwest of Bruce.

  • Single well subsea tie-back to Bruce
  • Produced 466 boepd net to BP in H1 2017*
  • Very late life field, scheduled to cease production in 2019
Bruce and Keith Bruce
Rhum
Rhum schematic

Rhum

Partners: (post completion): Serica (operator) 50%, IOC 50%

The Rhum gas field is located in block 3/29a, 44km north of Bruce and is a subsea development tied back to the Bruce platform via an insulated pipeline. Rhum is a strategic UK gas asset with significant upside potential.

  • Two producing wells, R-1 and R-2, with average aggregate production of 13,594 boepd net to BP in H1 2017*
  • High quality reservoir displaying ‘tank’ characteristics
  • R-3 well intervention scheduled for 2018, pending partner approval
  • High pressure, high temperature reservoir
  • High CO2 content requires gas blending.
    • Application in progress to lift entry specifications to remove need for blending with commensurate reduction in operating cost

* Based on OGA production numbers for H1 2017

Upon completion, operatorship of the Assets will transfer from BP to Serica, enabling Serica to drive full potential from the Assets.