UK-based oil firm Serica Energy has signed an agreement with Parkmead Group to buy its exploration and production assets, expanding its North Sea oil and gas activities.
As part of the agreement, Serica Energy will acquire all shares of Parkmead (E&P), which includes a 50% working interest in licence P2400 (Skerryvore) and a 50% working interest in licence P2634 (Fynn Beauly), for an initial consideration $6.4 million.
An additional deferred consideration of $11.5 million will be paid in stages over the next three years, as well as contingent payments linked to certain development milestones – payable on receipt by Serica of approval by the North Sea Transition Authority (NSTA) for a field development plan (FDP) relating to Skerryvore or Fynn Beauly.
According to Serica, the transaction provides optionality regarding future projects, simplifies decision making, and provides strategic flexibility relating to the existing position in Skerryvore through consolidating the interests in the P2400 licence, in which Serica Energy already holds a 20% interest.
Following completion of the transaction, Serica Energy will hold 70% and become the operator.
The P2634 licence was awarded in the 33rd Licencing Round in July 2024 to Parkmead (E&P), as operator, and Orcadian Energy, and includes the Fynn Beauly heavy oil discovery.
The current licence commitment is limited to technical studies to assess the feasibility of reducing Fynn Beauly oil viscosity using enhanced oil recovery techniques.
The transaction is expected to close in the first half of 2025, subject to customary completion adjustments and the carve-out of Parkmead (E&P)’s Dutch assets to a Parkmead affiliate and NSTA change of control consent.
