Serica Energy plc announced that it has agreed a further deal for the Bruce and Keith fields in the North Sea with Total. Under the deal, Serica will 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. This deal follows the announcement from BP 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 will 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.Â  On 1 October 2018 Serica announced that the deal is still pending.   Further to USâ withdrawal from the JCPOA certain services are currently provided under authorisations obtained from the US Office of Foreign Assets Control (OFAC) related to the Rhum field. The current OFAC licence which was issued to BP enable the provision of goods, services and support by certain US persons expired on 30 September 2018. Serica and BP submitted applications to renew the licence. On 1 October 2018 Serica announced that the licence has been renewed until 4 November 2018.   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 (78.25% + operator), BHP Billiton Petroleum Great Britain Limited (16%), 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 (58.84% + operator), BHP Billiton Petroleum Great Britain Limited (31.83%), 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 plc announced that it has agreed a further deal for the Bruce and Keith fields in the North Sea with Total. Under the deal, Serica will acquire a further 42.25% interest in the Bruce field and a further 25% interest in the Keith field. 