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 and additional interests in the Bruce and Keith (BK) assets from Total E&P, BHP and Marubeni.  Serica is acquiring:

  • 50% interest in Rhum (with the other 50% held by IOC)
  • 98% interest in Bruce (1% will be retained by BP and 1% by Total E&P)
  • 100% interest in Keith

Serica will pay an initial consideration and enter a profit-sharing deal with BP, Total E&P and BHP contingent on future production revenue from Bruce, Keith and Rhum.  The Marubeni transaction differs in that Serica will acquire the decommissioning obligations of Marubeni in return for negative consideration (i.e. a consideration payable by Marubeni to Serica) and no deferred or contingent consideration.

As a result of these transactions, 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 targeted to complete at the end of November 2018.

78.25% interest in Bruce (which is 16% held by BHP; 3.75% held by Marubeni; 1% will be retained by BP and 1% by Total E&P)

“Our acquisitions of interests in the Bruce, Keith and Rhum assets from BP, Total E&P, BHP and Marubeni will be transformational for Serica and place us in a strong position to unlock increased value from the assets and benefit from economy of scale. This is exactly in line with the Government's intention to maximise the economic recovery of assets in the North Sea, and we believe that these acquisitions will benefit our shareholders, partners and employees. This moves us closer towards our objective of being a highly efficient, profitable mid-tier operator focused on the UK North Sea, where we believe there is plenty of potential for further growth.”

Mitch Flegg
Chief Executive Officer

BP, Total E&P and BHP assume 100% of their obligations for the eventual decommissioning costs on the Bruce, Keith and, in the case of BP, Rhum portfolio, with Serica to contribute 30% in delayed consideration accrued from production revenues.