Deal Insight

BP sells UK Bruce Area fields to Serica Energy

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29 November 2017

BP sells UK Bruce Area fields to Serica Energy

Report summary

BP has agreed to sell its interests in the Bruce Area fields to Serica Energy. The sale includes operated interest in three fields: Bruce (36%), Keith (34.83%) and Rhum (50%). The acquisition marks Serica’s entry as an operator on the UKCS. The deal continues the trend of innovative M&A deals seen in the UK over the past 12 months. An upfront consideration of £12.8 million (US$17 million) will be supplemented by various contingent payments, potentially reaching between £200 to £300 million (US$265-$400 million). The sale is not a surprise for BP. The assets are considered non-core and the Major has been seeking divestment opportunities to reach at least the lower end of its 2017 disposal target of US$4.5-$5.5 billion.

Table of contents

  • Executive summary
  • Transaction details
    • Rhum is key
  • Deal analysis
  • Upsides and risks
  • Strategic rationale
  • Oil & gas pricing and assumptions

Tables and charts

This report includes 4 images and tables including:

  • How the deal payments could be structured based on Wood Mackenzie data and analysis
  • Oil & gas pricing and assumptions: Table 1
  • Oil & gas pricing and assumptions: Table 2
  • Upstream assets: Table 1

What's included

This report contains:

  • Document

    BP sells UK Bruce Area fields to Serica Energy

    PDF 342.58 KB