Aberdeen-based energy group Parkmead has announced its decision to exit the North Sea oil sector by selling its UK offshore oil licenses to Serica Energy in a deal worth up to £134 million. This strategic move marks a significant shift in the company’s focus towards renewable energy and gas production.
The sale, which includes Parkmead’s wholly-owned subsidiary Parkmead (E&P) Ltd, comprises a £14 million firm cash consideration and up to £120 million in contingent payments.
The initial payment of £5 million will be made upon completion of the sale, with three additional deferred payments totalling £9 million to be paid over the next three years.
Tom Cross, Parkmead’s Executive Chairman, expressed his enthusiasm for the transaction. He commented:
“I am delighted to announce this important transaction for Parkmead. Through the sale of these UK offshore oil licences we have no further capital investment requirements, whilst retaining a very attractive share of the upside should any developments at Skerryvore or Fynn Beauly proceed.”
The decision to divest from North Sea oil assets comes as a response to the challenging political environment and the UK Government’s focus on its Net Zero Strategy. Parkmead believes that the offshore sector’s future would be better served within the portfolio of a larger, North Sea-focused company like Serica Energy.
Following this sale, Parkmead will shift its focus to growing its core UK renewable and Netherlands gas assets. The company is actively working on several initiatives, including:
- Identifying short-cycle, rapid payback drilling and workover opportunities in the Netherlands
- Progressing a joint venture agreement for a major wind farm of up to 100 MW at its Pitreadie site
- Pursuing value-adding acquisition opportunities in renewable energy assets onshore UK and international E&P projects
Cross added: “The addition of the near-term, firm £14 million cash consideration, together with Parkmead’s existing cash, means the Group is well-funded to pursue the next phase of its growth plans in natural gas, renewable energies and international E&P.”
This strategic pivot aligns with the broader industry trend of traditional oil and gas companies diversifying their portfolios to include more sustainable energy sources. As Parkmead transitions away from North Sea oil, it positions itself to capitalise on the growing demand for cleaner energy solutions and to contribute to the UK’s energy transition goals.
