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 Q3 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.