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Serica Energy announce execution of agreements for the acquisition of interest in GBA

Published by , Editorial Assistant
Oilfield Technology,

Serica Energy has announced the execution of agreements for the acquisition of 30% non-operated interests in the P2498 and P2170 licences (together the Greater Buchan Area (GBA) from Jersey Oil & Gas (JOG).

As a result of the Transaction, Serica will have the option of participating in the re-development of the Buchan field and other potential developments in the GBA.

The GBA encompasses several oil and gas accumulations some 150 km north-east of Aberdeen, in the Outer Moray Firth. The largest of these accumulations is the Buchan field which produced for over thirty years, ceasing production in 2017 owing to the end of the useable life of the floating production facility. The concept select report submitted to the NSTA for the re-development of Buchan is based on a new production hub located at the Buchan field utilising the floating production, storage and offloading (FPSO) vessel currently operating on the UK Western Isles fields and planned to come off-station in the second half of 2024.

A phased development is envisaged involving the re-development of the Buchan field in Phase 1 and the possible development of the J2 and Verbier discoveries in Phase 2. Mid-case contingent resources from the Buchan field alone are estimated to be in region of 70 million boe, making it the third largest pre-development field in the UKCS. There are other discoveries and prospects in close proximity which might provide additional tie-back opportunities to the FPSO.

The NSTA has issued a no objection letter following the submission of the concept select report in support of the Buchan re-development programme. A proposed field development plan (FDP) for Buchan is expected to be submitted to the NSTA shortly, with approval of the FDP potentially in the second half of 2024.

The development concept includes limited works on the FPSO in order to prepare it for re-deployment. These works involve the installation of water injection booster pumps, produced water injection modifications and preparation of the vessel for future electrification. Following the recent innovation and targeted oil and gas (INTOG) licence awards, there is the possibility of third-party floating wind power developments located close to the GBA. It is anticipated that the FPSO will be connected to one of these, should they become available. Oil export is planned to be via shuttle tankers.

Subject to project sanction and regulatory approval, the target for first production is late 2026. Peak production rates are expected to be around 35 000 bpd. Gross development costs are estimated to be in the order of £850-950 million, which under the current fiscal terms, are expected to qualify for tax relief at a rate of approximately 91%.

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