BP to Sell North Sea Assets to Serica for ￡300 million

BP PLC has agreed to sell a package of its interests in the Bruce assets in the North Sea to Serica Energy plc.

BP currently operates the assets, which comprise the Bruce, Keith and Rhum fields, three bridge-linked platforms and associated subsea infrastructure.

Overall, BP expects to receive payments of around £300 million, the majority of which will be received over the next four years.

BP aims to complete the sale and transfer of operatorship in the 3rd quarter of 2018.

The Bruce field was discovered in 1974 and came into production in 1993, with Keith tied back to Bruce in 2000. Rhum, a high-pressure, high-temperature satellite field located 40 kilometres to the north of Bruce, was brought into production in 2005

The Bruce assets are expected to transition to Serica as a fully operational entity with around 110 staff who operate and support the assets expected to transfer with the business.

“This is an example of BP’s Upstream strategy in action – refreshing our portfolio and focusing our activity on assets which will add most value over the long-term. We remain committed to the North Sea and continue to invest. We expect our production there to double to around 200,000 barrels equivalent a day by 2020 through new projects like Quad 204 and Clair Ridge,” said Bernard Looney, BP chief executive, upstream.

“This transaction will establish Serica as a leading British independent oil company with the scale, balance sheet and operating capability to prosper in the North Sea’s rapidly changing upstream oil and gas industry,” added Tony Craven, chairman, Serica.