Oil explorer Serica Energy is buying BP’s 18% stake in the Erskine field in the UK North Sea for £6.5million plus 27million new shares.
London-based Serica said the deal, covering blocks 23/26a and 23/26b in the central zone, would give it an immediate and long-term cash-flow stream.
Net production of the Chevron-operated gas and condensate assets is estimated to be 1,234 barrels of oil equivalent (boe) per day after providing for planned maintenance shutdowns.
It increases Serica’s proven and probable reserves from an estimated 5.2million boe to an estimated 8.8million boe.
The firm’s chairman,Tony Craven Walker, said: “BP will be taking an interest in Serica as a result of the transaction and we welcome BP as a shareholder.
“Serica intends to build upon this acquisition to secure a stronger presence in the UK as well as overseas, where we are seeking to broaden our existing portfolio in Ireland, Morocco and Namibia.”
The deal, which will give BP a stake of up to 9.7% in Serica, depends on the consent of the other partners in Erskine – Chevron and BG Group – and the UK Government.
Serica raised about £11.5million last year to fund future growth.
It said Erskine was capable of significantly improved production and had strong synergies with its North Sea Columbus gas and condensate field.
Erskine’s export route is through the BG-operated Lomond platform, which may also be used for Columbus as Serica strives to bring that field into production.
Meanwhile, BP has signed a deal worth around £11.8billion to supply China National Offshore Corporation with liquefied natural gas.
The oil giant also insisted its operations In Iraq have been unaffected by violence in the country.
“Non-essential production people have left but operations continue,” BP chief executive Bob Dudley added.