Serica Agrees with BP to Extend Completion Timetable for BKR Transaction
Serica Energy plc announced Friday that it has agreed with BP plc to extend the completion timetable for the BKR transaction to early November.
This extension is “to enable outstanding regulatory and partner consent processes to be completed, including processes by the US Office of Foreign Assets Control relating to the Rhum Field,” Serica said in a company statement.
These consents are part of the conditions for completion as set out when the BKR transaction was announced, Serica stated.
All other transition requirements, including transfer of offshore and onshore staff, readiness of operating, safety and environmental procedures and transfer of all contractual obligations, are “ready to complete once all outstanding consents have been received”, Serica said.
Mitch Flegg, chief executive of Serica Energy, said the company remains “fully committed” to completing the BKR deal.
“We have taken the decision to extend the completion period on BKR as a practical measure that provides additional time for the approvals process to complete,” Flegg said in a company statement.
“We are working closely with the various authorities and with field partners to satisfy all remaining conditions and we appreciate the commitment that the relevant parties are making as we near completion of this complex transaction. Serica is well prepared to assume operatorship of the assets,” he added.
“Completion of these important transactions will enable Serica to assume operatorship and optimize the full performance of these valuable UK offshore assets, extend producing life where possible and ensure maximum recovery of remaining reserves,” Flegg continued.
In November 2017, Serica revealed that it had agreed to acquire BP plc’s interests in the Bruce, Keith and Rhum (BKR) fields in the North Sea. The deal was initially expected to go through in mid-2018.
On August 3, Serica announced that it had agreed to acquire further interests in the Bruce and Keith fields and associated infrastructure in the UK North Sea from Total E&P UK Limited.
Under the deal, Serica will acquire a 42.25 percent interest in the Bruce field and a 25 percent interest in the Keith field and associated infrastructure. Completion will be subject to completion of the acquisition of interests in Bruce, Keith and Rhum from BP.
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