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.  Serica is acquiring:

  • 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)
  • 50% interest in Rhum (with the other 50% held by IOC)
  • 59.83% interest in Keith (with BHP holding 31.83%; and Marubeni, 8.33%)

Serica will pay an initial consideration and enter a profit-sharing deal with BP and Total E&P contingent on future production revenue from Bruce, Keith and Rhum.

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 targeted to complete in early November 2018.

“Our acquisitions of interests in the Bruce, Keith and Rhum assets from both BP and Total E&P 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 both 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 and Total E&P 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.