LONDON, UK: Serica Energy plc announced on Thursday that it has signed agreements to acquire 30% non-operated interests in the Greater Buchan Area (GBA) project from Jersey Oil & Gas (JOG).
The GBA project is a proposed re-development of the Buchan field and other potential developments in the Outer Moray Firth, off the coast of Scotland.
The Buchan field, which produced for over 30 years until 2017, is planned to be re-developed using a floating production, storage and offloading (FPSO) vessel that is currently operating on the UK Western Isles fields. The FPSO acquisition by NEO Energy, the operator of the GBA project, was announced on 17 November 2023.
The transaction is expected to be completed in early 2024, subject to regulatory, partner and interested party approvals. Serica will pay JOG US$ 6.8 million on completion, and will make further payments and carry costs depending on the progress of the GBA project. Serica is not committed to participate in the GBA developments and has the option to withdraw at each stage.
Mitch Flegg, Chief Executive of Serica, said that the transaction will add a third production hub and further resilience to Serica’s North Sea portfolio. He also said that the GBA project has been designed to deliver a low level of carbon emissions, consistent with Serica’s objective of reducing the overall carbon intensity of its activities.