Serica Reports Progress with UK Fields

UK independent Serica Energy reported March 9 some progress in restoring flows from the Chevron-operated Erskine gas and condensate field in the UK central North Sea, in which Serica has a 18% non-operating interest.

After it announced late January a blockage on the Lomond to Everest condensate export pipeline during routine cleaning operations, Serica said that specialist pumping equipment has achieved “some communication across the blockage” and it plans to continue pressure-pulsing until it is fully clear. “In parallel, a permanent solution to the pipeline wax problem is being advanced,” it said.

Serica has also provided an update on its agreed deal November 2017 to acquire BP's interests in the UK North Sea Bruce, Keith and Rhum (BKR) fields for £300mn ($397mn) with an effective date of January 1, 2018, expected to complete 3Q 2018. Flows from these BKR fields restarted January, after the shutdown of the Forties pipeline system, and have some 16,000 boe/d net to BP. Serica will receive 40% of the net cash flow for BKR in 2018, rising on a stepped basis to 100% in 2022. Serica said that commodity prices for the year to date have been stronger than seen in recent years, with the UK NBP gas price averaging 52p/th and Brent averaging $67.50/b.