Serica Energy plc has completed its 30% non-operated acquisition in the Great Buchan Area licences P2498 and P2170 from Jersey Oil & Gas plc.
DEVELOPMENT
The GBA contains oil and gas accumulations 150km northeast of Aberdeen, and comprises the largest field Buchan, now renamed Buchan Horst, and Verbier.
Project partners are now operator NEO Energy with 50%, Serica (30%) and JOG (20%).
Serica has the option of participating in the re-development of the Buchan field and other potential projects such as the development of the J2 and Verbier discoveries.
Subject to approvals, the joint venture is targeting first production during Q4 2026.
Serica has paid JOG US$7.5 million being $6.8m adjusted to reflect an economic date of 1 April 2023.
The remainder of the potential consideration is in the form of a Buchan development cost carry and contingent amounts linked to certain future events.
Outgoing chief executive Mitch Flegg said that the deal could add a third production hub to Serica’s North Sea portfolio.
“As a potential domestic source of oil and gas with a low level of production emissions, a provider of quality jobs for UK workers and a generator of much needed future tax revenues, Buchan is the sort of project the UK needs as part of the energy transition.”