UK-based oil and gas company Serica Energy has agreed to acquire bp’s entire stake in the P111 and P2544 licences in the UK central North Sea. 

This acquisition includes a 32% non-operated working interest in the P111 licence, which contains the Culzean gas condensate field, and the adjacent exploration licence P2544. 

Under the terms of the transaction, which has an economic effective date of 1 September, Serica Energy will make an upfront payment of $232m (£174.89m) in cash, subject to standard working capital adjustments. 

Additional payments are contingent on successful exploration outcomes at the P2544 licence and any changes to the UK ring-fence fiscal regime. 

According to the joint operating agreement among the partners of the Culzean field, this acquisition is subject to a pre-emption period lasting 30 days. 

During this time, each partner in the Culzean field – TotalEnergies, holding a 49.99% stake, and NEO NEXT, with an 18.01% stake – has the right to acquire bp's interest in the licences under the same conditions agreed upon by Serica.  

Serica CEO Chris Cox said: “Should this transaction complete, it would deliver a step-change for Serica, adding material production and cash flows from the largest producing gas field in the UK. 

“Culzean is a world-class asset, delivering gas from a modern platform with exceptionally high uptime and low emissions.” 

The deal is due to be completed around the end of 2025.  

Discovered in 2008 and operational since 2019, Culzean is a mid-life gas condensate field operated by French oil major TotalEnergies. 

With remaining net proved and probable reserves estimated at 33 million barrels of oil equivalent as of 1 January 2025, the field is stated to be the largest gas field on the UK Continental Shelf (UKCS) by production. 

The field delivered net production of around 25,500 barrels of oil equivalent per day (boepd) to bp in the first half of 2025. 

Serica plans to finance the acquisition through interim cash flows from the Culzean interest and existing financial resources, including its $525m Reserve Based Lending facility. 

Lambert Energy Advisory is serving as advisor to Serica on this acquisition. 

Serica Energy is an independent oil and gas company that holds a diverse portfolio of assets on the UKCS. 

Its production assets are centered around two primary hubs: the Bruce, Keith and Rhum fields located in the UK Northern North Sea, which the company operates, and a combination of both operated and non-operated fields connected to the Triton floating production storage and offloading unit.  

Additionally, Serica holds operated interests in the producing Columbus field in the UK central North Sea and the Orlando field in the UK northern North Sea, as well as a non-operated interest in the producing Erskine field, also situated in the UK central North Sea. 

Recently, Serica Energy entered into an agreement to purchase 100% of the issued share capital of Prax Upstream from Prax Exploration & Production.