BP has signed an agreement to divest stakes in the Bruce assets in the North Sea to Serica Energy for £300m.
BP’s Bruce assets comprise three fields including Bruce, Keith and Rhum as well as three bridge-linked platforms and associated subsea infrastructure.
Under the terms of the deal, Serica will purchase a 36% interest in Bruce, a 34.83% stake in Keith and a 50% interest in Rhum fields.
For the stakes, BP will receive £12.8m in upfront payment and share of cash flows over the next four years, from Serica.
Serica will also pay 30% of BP’s post-tax decommissioning costs and make several contingent payments based on assets performance and future oil prices.
BP Upstream CEO Bernard Looney said: “This is an example of BP’s Upstream strategy in action – refreshing our portfolio and focusing our activity on assets which will add most value over the long-term.
“While the Bruce assets are no longer core to BP, we are confident that Serica is the right owner and operator to maximize their continuing value for both companies and for the UK.”
BP said it plans to double its production capacity in the North Sea to around 200,000 barrels equivalent a day by 2020 through new projects like Quad 204 and Clair Ridge.
Serica chairman Tony Craven Walker said: “This transaction will establish Serica as a leading British independent oil company with the scale, balance sheet and operating capability to prosper in the North Sea’s rapidly changing upstream oil and gas industry.”
The deal, which is subject to the receipt of regulatory and other third-party approvals, is scheduled to be completed in the third quarter of 2018.