A transformational deal

Rhum, Bruce and Keith

Serica Energy, a London AIM-listed international exploration & production (E&P) Company, is buying the Bruce, Keith and Rhum (BKR) assets in the North Sea from BP. Serica is acquiring:

  • 36% interest in Bruce (which is 43.25% held by Total; 16% held by BHP; 3.75% held by Marubeni; and 1% will be retained by BP)
  • 50% interest in Rhum (with the other 50% held by the IOC)
  • 34.83% interest in Keith (with Total with holding 25%; BHP, 31.83%; and Marubeni, 8.33%)

Serica will pay £12.8 million initial consideration and enter a profit-sharing deal with BP contingent on future production revenue from Bruce, Keith and Rhum. The Bruce, Keith and Rhum assets produced ~18,500 boepd net to BP in H1 2017.

As a result of this transaction, Serica will become a leading UK mid-tier E&P Company with significant plans for growth and development.

The deal is effective from 1 January 2018 and is expected to complete in mid-2018.

“Our acquisition of interests the Bruce, Keith and Rhum assets is transformational for Serica. It has been the Board’s objective to diversify Serica’s business risk, which was previously 100% on production from our interest in the Erskine field, and, by doing so, to provide a platform for future growth. The acquisition meets these criteria and will establish Serica as a leading British independent oil company with the scale, balance sheet and operating capability to grow and prosper in the rapidly changing upstream oil and gas business.”

Tony Craven-Walker
Executive Chairman

BP assumes 100% of the obligations for the eventual decommissioning costs on the Bruce, Keith and Rhum portfolio as a whole, with Serica to contribute 30% in delayed consideration accrued from Bruce, Keith and Rhum production revenues.