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Serica Energy to acquire BP’s stake in BKR fields in North Sea

Serica is acquiring BP’s interest in the BKR assets in a deal back-dated to January.

oil and gas operations
BP has seen 16,000 boepd from BKR since January

Serica Energy Plc (LON:SQZ) has agreed to acquire stakes in three North Sea oil and gas fields from BP Plc (LON:BP).

The Bruce, Keith and Rhum fields (referred to collectively as BKR) have been producing some 16,000 barrels oil equivalent per day net to BP, following the January restart of the connected Forties pipeline.

READ: Serica Energy shares drop on pipeline blockage

Serica is acquiring BP’s interest in the BKR assets in a deal back-dated to January, and the transaction is expected to complete in the third quarter.

As a result, the company is expected to see 40% of the net cash flow from the BKR assets for 2018, rising on a ‘stepped basis’ up to 100% by 2022.

Separately, Serica updated investors on operations to unblock the Lomond-Everest export pipeline which is impacting its Erskine field. It said that following deployment of specialist pumping equipment, “some communication” has been achieved across the blockage and the plan is to continue pressure pulsing until a significant breakthrough is achieved.

Additionally, it added that work is underway to come up with a permanent solution to the pipeline wax problem.

Quick facts: Serica Energy Plc

Price: 123 GBX

AIM:SQZ
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Market Cap: £328.69 m
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