Serica Energy plc plans to buy BP’s 32% non-operated working interest in UK central North Sea licences P111, containing the Culzean gas condensate field, and the adjacent P2544, for $232 million cash.
WORLD-CLASS
The purchase is subject to a 30-day pre-emption period during which Culzean partners – operator TotalEnergies holding 49.99%, and NEO NEXT (18.01%) have the option to acquire BP’s stake on the same terms as Serica’s.
Discovered in 2008, the mid-life gas condensate field came onstream in 2019 and has remaining net 2P reserves of circa 33 mmboe.
Culzean is currently the “largest single producing gas field in the UK North Sea” with production net to BP of circa 25,500 barrels of oil equivalent per day during H1 2025, at an “exceptionally high operating efficiency of 98%”.
If the deal proceeds, Serica will make further cash payments on successful results and production from P2544, and changes to the UK ring-fence fiscal regime.
The company would fund the purchase through cash from Culzean interest and existing cash combined with undrawn amounts under its existing $525 million reserve based lending facility.
Serica added it was also considering establishing a new “acquisition facility”, which would be refinanced through increased debt, to reflect the company’s “larger, more diversified and cash generative asset base”.
“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,” said chief executive Chris Cox.
“Culzean is a world-class asset, delivering gas from a modern platform with exceptionally high uptime and low emissions.”