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Serica Energy: acquisition of Marubeni interests in Bruce and Keith

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Oilfield Technology,

Serica Energy is pleased to announce that Serica Energy (UK) Limited (‘Serica UK’) has signed a further sale and purchase agreement (‘SPA’) to acquire additional interests in the Bruce and Keith fields and associated infrastructure in the UK North Sea (the ‘Transaction’).

Under the SPA, Serica UK will acquire the 3.75% interest in the Bruce field and the 8.33% interest in the Keith field and associated infrastructure (‘Marubeni Assets’) owned by Marubeni Oil & Gas (UK) Limited (‘Marubeni’).

The structure of the Transaction differs from the other deals that Serica has entered into with BP, Total E&P and BHP, in that Serica will acquire the decommissioning obligations of Marubeni, but will receive in turn a cash consideration from Marubeni, and there will be no deferred or contingent consideration. This reflects in part the small interest in Bruce being acquired.

The Transaction has an effective date of 1 January 2018 and completion is subject to completion of the previously announced acquisition of interests in the Bruce, Keith and Rhum fields from BP (‘BP Transaction’). The Transaction is also subject to inter alia certain regulatory, government and partner consents with completion targeted for 30 November 2018. The Transaction together with the previously announced purchases from BP, Total E&P and BHP will result in Serica consolidating its ownership of the Bruce and Keith fields to 98% and 100% respectively post-completion.

Mitch Flegg, Chief Executive of Serica Energy, commented:

“We are targeting completion of the transactions with BP, Total E&P, BHP and Marubeni on 30 November 2018 and our ownership in Bruce will then increase to 98% and in Keith to 100%. On that date over 110 staff will transfer from BP to Serica to join the team that we have recruited in our new operational headquarters in Aberdeen. It is our intention to build on the excellent work that has been performed by BP and its partners in Bruce, Keith and Rhum. With our consolidated ownership of the three fields, and as operator, we will be in a strong position to deliver enhanced returns from these assets and extend their operating lives for the benefit of our shareholders and fellow stakeholders in the North Sea and Aberdeen.”

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