Serica Energy inks deal with BG and SSE

Oil explorer Serica Energy has reached a deal with BG Group and SSE to increase its resource stake in the Columbus Field offshore the UK by 50% to 7.8m barrels of oil equivalent.

Serica is currently in a joint venture on Block 23/16f with Endeavour Energy and EOG Resources, with a separate project at Block 23/21 run by BG and SEE. Both blocks cover the Columbus field and as part of the agreement, BG and SEE will transfer their equity in the part of Block 23/21 which contains an extension to the Columbus field to Serica and its partners.

Following completion of the transaction, the Columbus participants will own 100% of the Columbus field with Serica having a 50% interest and continuing as field operator.

Chairman Tony Craven Walker said: “This transaction, along with the improved performance of the Lomond platform in recent months, one of a number of potential hosts, has given Serica encouragement that a cost effective offtake route can be found for Columbus.

There is the added benefit that future production from Columbus could help extend the life of other fields and facilities in the area, including the Erskine field in which Serica has an 18% interest.”

At 0950 GMT, Serica shares were up 1.5% at 11.30p.