Serica Energy plc has announced an agreement to acquire BP’s entire non-operated working interest in two UK North Sea licences: P111, home to the Culzean gas condensate field, and P2544, an adjacent exploration licence. The proposed deal, which is subject to pre-emption rights for existing field partners, represents a major boost for Serica’s production and cash flow profile.
Chris Cox, CEO of Serica, commented: “Should this transaction complete, it would deliver a step-change for Serica, adding material production and cash flows from the largest producing gas field in the UK. Culzean is a world-class asset, delivering gas from a modern platform with exceptionally high uptime and low emissions.”
The deal’s economic date is set for 1 September 2025, with an upfront cash consideration of $232 million, subject to customary adjustments and further payments tied to future exploration success on P2544 and potential fiscal regime changes. Completion is anticipated around the end of 2025.
Serica will fund the acquisition through a combination of interim cashflows from the Culzean interest, existing financial resources, and may introduce new acquisition financing, with future refinancing options considered to reflect a stronger, more diversified asset base.
The Culzean field, operated by TotalEnergies, is currently the UK North Sea’s largest producer, with production net to BP averaging around 25,500 boepd in H1 2025 at an operating efficiency of 98%. Estimated remaining net 2P reserves are circa 33 mmboe, with significant upside potential from infill drilling and nearby exploration.
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The asset boasts low production costs at $10.7 per barrel of oil equivalent and is recognised for its carbon footprint, which is significantly below the sector average of 20 kg CO2/boe.
Serica Energy, listed on AIM under SQZ, controls a balanced UKCS portfolio with assets across the Bruce, Keith, and Rhum fields, plus others in both the Northern and Central North Sea regions. The acquisition aligns with Serica’s growth strategy, combining active investment in its operations with M&A opportunities.
For further enquiries, Serica’s leadership and financial advisers can be contacted as listed in the official release.
