Serica Picks Export Route for UK Gas Field

Serica Energy said in its 2017 results announcement that partners in the North Sea Columbus gas field project, which it operates, have chosen an offtake route: the Arran-to-Shearwater pipeline. The alternative was the Chrysaor-operated Lomond platform directly southeast.

Serica, which owns 50% of Columbus, submitted a field development plan to the UK regulator Oil & Gas Authority, which is due to start mid-2018. Columbus has proved and probable contingent resources (at 100%) of 12.6mn barrels of oil equivalent, of which 70% (or 53.8bn ft³) is gas.

Serica also expects its £300mn ($397mn) acquisition of BP's interests in the Bruce, Keith and Rhum (BKR) fields to complete late 3Q 2018, and to counterbalance Serica's “current Erskine single-field exposure,” and that it was “seeking complementary acquisitions with a continuing focus on the UK North Sea.”

Work continues to clear the early 2018 wax blockage in Lomond-to-Everest condensate export line, added Serica. In the three months since December, first the Forties pipeline system closure and later wax build-ups on the Lomond line reduced Erskine’s gas and condensate production. Serica said that an export pipeline bypass will avoid future wax restrictions and is due to start operating in 3Q 2018, adding: "We fully support Chrysaor's proposal for a pipeline bypass."

Serica also reported 2017 net profit of $17.1mn, compared with $10.8mn in 2016.

Map credit: Serica Energy