Oil and gas company Serica Energy’s subsidiary Serica Energy UK has received a new UK petroleum licence P2501 under blocks 3/24c and 3/29c, which is located adjacent to the Rhum field in North Sea.
UK Oil and Gas (UKOG) Authority has awarded Serica Energy an ‘Out of Round’ award covering this licence. Serica owns a 50% interest in the Rhum field.
UKOG’s award comprises the high-pressure / high-temperature (HPHT) North Eigg and South Eigg prospects, with North Eigg serving as the primary prospect with 360 billion cubic feet (P50) and over one trillion cubic feet (P10) of recoverable gas. Sharing similar geological features with the Rhum field, the North Eigg prospect is clearly defined on three-dimensional (3D) seismic.
According to the company, it forms a structural trap sealed against the East Shetland bounding fault. Serica will drill an exploration well within three years, with plans to develop a commercial discovery through a tieback to the Bruce platform.
Serica Energy CEO Mitch Flegg said: “Since we completed our acquisition of the Bruce, Keith and Rhum (BKR) assets just over a year ago, our strategy has been to optimise economic returns through a hub strategy that includes operating efficiencies, investment and securing new third-party business in the BKR catchment area.
“In the event of a commercial discovery, the optimal development option will be a tie-back to the Bruce platform, which we would seek to fast track.
“These include planning for the rig intervention in 2020 designed to bring the Rhum-3 well into production for the first time and efforts to bring new third-party business to the Bruce facilities.”
In October 2019, Serica Energy received a renewed licence and secondary sanctions assurance from the US Office of Foreign Assets Control (OFAC) with respect to the Rhum field.