BP PLC signed an settlement to promote adjoining manufacturing and exploration belongings on the UK’s aspect of the North Sea that embody the Culzean fuel and condensate subject to Serica Power PLC for at the very least $232 million, Serica stated Monday.
The transaction consists of BP’s 32 % non-operating stake within the P111 license, which accommodates Culzean, and the adjoining P2544 exploration block, Serica stated in a press launch.
The acquisition is topic to a 30-day preemption interval throughout which BP’s companions – operator TotalEnergies SE (49.99 %) and NEO NEXT Power Ltd (18.01 %) – might train their possibility to accumulate BP’s stake on the identical phrases as these agreed by Serica, Serica stated.
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“Ought to this transaction full, it could ship a step-change for Serica, including materials manufacturing and money flows from the most important producing fuel subject within the UK”, Serica chief government Chris Cox stated. “Culzean is a world-class asset, delivering fuel from a contemporary platform with exceptionally excessive uptime and low emissions”.
BP’s share of manufacturing from Culzean was about 25,500 barrels of oil equal a day within the first half of 2025, Serica famous.
The transaction includes an upfront money consideration of $232 million, “topic to customary working capital changes and partially offset by the receipt of a cost reflecting interim post-tax cashflows between the financial date of the transaction [September 1, 2025] and the completion date, anticipated across the finish of 2025”, Serica stated.
Serica might make two extra money funds contingent on “profitable outcomes and manufacturing from a big exploration alternative on the P2544 license and modifications to the UK ring-fence fiscal regime”, Serica stated.
“The corporate can fund the consideration via a mix of interim cashflows from the Culzean curiosity and present monetary sources (together with money and undrawn quantities beneath the prevailing $525 million Reserve Primarily based Lending facility)”, Serica stated.
“The corporate is nevertheless additionally contemplating setting up a brand new acquisition facility, which might be refinanced in the end by way of elevated debt amenities to mirror the corporate’s bigger, extra diversified and money generative asset base inclusive of the Prax and Culzean acquisitions, which the corporate estimates would assist a bigger borrowing base”.
BP expects to make $3-4 billion value of asset gross sales in 2025, a part of a $20-billion divestment goal by 2027 beneath the vitality big’s “reset” plan introduced February 2025.
It logged $1.68 billion in “divestments and different proceeds” within the first half of 2025, based on its second quarter report.
“Anticipated proceeds from accomplished or introduced divestments have reached round $3 billion for the 12 months and we’ve got now delivered round $1.7 billion of structural value reductions for the reason that begin of our program”, chief government Murray Auchincloss stated within the report.
To contact the writer, e mail jov.onsat@rigzone.com
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