Serica Energy plc announced on 5 November 2018 that it has signed a sale and purchase agreement to acquire further interest in the Bruce and Keith fields along with the associated infrastructure. Under the agreement Serica will take a 16% interest in the Bruce field and a 31.83% interest in the Keith field from BHP Billiton Petroleum Great Britain Limited (BHP) for a cash consideration of GBP 1 million to be adjusted for working capital and 40% of post-tax cashflows. This deal follows two previously announced transactions between Serica and BP and Serica and Total to acquire interest in the Bruce, Keith and Rhum fields. The transactions have an effective date of 1 January 2018 and completion of the BHP deal is subject to regulatory approval and the completion of the deal with BP. BHP will retain liability of the costs of decommissioning facilities and wells already in place. All three deals between Serica and BP, Total and BHP are expected to complete on 30 November 2018.  Also on 5 November 2018 Serica announced that all the conditions relating to the licence of the Rhum field issued by the U.S. Office of Foreign Assets Control (OAFC) have now been met. This means that all benefits relating to the Iranian Oil Company (IOC) from the Rhum field (which IOC is a partner) will be held in escrow for such a period as US scantions apply and ensure that neither IOC directly or any indirect parent company of IOC will derive any economic benefit from the Rhum field. IOC will also have no decision making powers with regards to Rhum.   On 9 October 2018 Serica announced that it, along with BP, received a conditional licence and assurance from the UK Office of Foreign Assets Control (OFAC) relating the UK North Sea Rhum field. The licence will allow US or US-owned entities to provide goods, services and support involving the Rhum field. Also, non-US entities providing goods, services and support will not be exposed to US Secondary sanctions. Therefore, production from Rhum can now continue unaffected. The newly awarded licence is available until 31 October 2019.   The initial deal between BP and Serica was announced in November 2017 in which it agreed to sell 36% interest in the Bruce field, 34.84% interest in the Keith field and 50% interest in the Rhum field to Serica. Under the terms of that deal Serica was to pay an initial consideration of GBP 12.8 million along with a share of cash flows over the next four years, a consideration equivalent to 30% of BPâs post-tax decommissioning costs and several contingent payments of future asset performance and product prices. BP expects to receive an overall payment in the region of GBP 300 million. In addition to the interest approximately 110 staff working for BP on the Bruce assets are also expected to make the transition to Serica. BP is to retain a 1% interest in Bruce to oversee its future operational and financial performance. In an update on 22 May 2018 Serica confirmed that amidst the decision by the US Government to withdraw from the Joint Comprehensive Plan of Action (JCPOA) and reintroduce US Sanctions on Iran, the company remains committed to complete the deal with BP which is partnered by the Iranian Oil Company (U.K) Limited in the Rhum field. The second deal involved Serica and Total. Under the deal, Serica was to acquire a further 42.25% interest in the Bruce field and a further 25% interest in the Keith field. Initial consideration for the interests is USD 5 million payable on deal completion then a deferred consideration of USD 15 million to be paid in three USD 5 million instalments, payable every 8 months following completion of the acquisition and subject to continued production from the nearby Rhum field. Total will retain a 1% interest in the assets.   Bruce is a middle Jurassic gas, condensate, oil field discovered in 1974 by Hamilton Brothers Oil Co with well 9/8-1. It is a complex structure comprising three reservoirs - Bruce sandstone (oil and gas condensate), Statfjord sandstone (oil and gas condensate), and Turonian limestone (gas condensate). Appraisal drilling was largely unsuccessful until 1981. The field was not developed until 1990 and was developed using two bridge-linked platforms D and PUQ. It was brought onstream on 19 May 1993. During Phase II of the Bruce development a third platform was added to accommodate additional gas compression facilities. This CR platform, is bridge linked to the two original Bruce Field Platforms. Improved recovery commenced in 1997 with produced water being re-injected into the reservoir. The Keith field was discovered initially in 1983 by well 9/8a-8 which was drilled as a Bruce outpost. The field was not brought onstream until 2000. It has been developed as tie-back to Bruce. The Rhum field was discovered in 1977 with well 3/29-2 by a Joint Operating Agreement between BP and Iranian Oil. It was not initially developed due to the HP/HT nature of the reservoir. In 2002 the field development plan was submitted to the then Department of Trade and Industry. It was developed as a subsea tie-back to the Bruce field with two production wells and the completion of an appraisal well. Production commenced in 2005.   Following completion of the deal, interest in Bruce (lying in licences P90, P209 and P276) will be held by Serica Energy plc (94.25% + operator), Marubeni Oil and Gas (U.K.) Limited (3.75%), Total E&P UK Ltd (1%) and BP Exploration and Operating Company (1%). Interest in Keith (P209) will be held by Serica Energy plc (91.67% + operator), Marubeni Oil and Gas (U.K.) Limited (8.33%) and Total E&P UK Ltd (1%). Interest in Rhum (P198, P566 and P975) will be held by Serica Energy plc (50% + operator) and Iranian Oil Company (U.K.) Limited (50%).
Serica Energy has acquired 16% interest in Bruce (->94,25% ) and 31,83% in Keith (->91,67%) fields from BHP Billiton, following acquisitions of interests in the two fields from BP and Total in the past year.