We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BP to Sell Stake in UK North Sea Licenses to Serica Energy for $232M
Read MoreHide Full Article
Key Takeaways
BP plans to sell its stakes in the P111 and P2544 North Sea licenses to Serica Energy for $232 million.
The deal includes BP's 32% non-operated interest in P111, home to the Culzean gas condensate field.
Serica expects the acquisition to boost production, cash flow, and long-term exploration potential.
BP plc (BP - Free Report) , the British oil and gas major, announced the sale of its stakes in the P111 and P2544 licensesin the U.K. North Sea. Serica Energy, a U.K.-based independent energy company, will purchase these assets for a cash consideration of $232 million. This acquisition by Serica Energy includes a 32% non-operated working interest in the P111 license. The P2544 is an exploration license located adjacent to the P111 license.
The P111 license holds the Culzean gas condensate field, operated by the French energy company, TotalEnergies. Serica mentioned that the Culzean field is currently the largest individual gas-producing field in the UK North Sea. In the first half of 2025, the field produced 25,500 barrels of oil equivalent per day (boe/d) net to BP. The field also holds approximately 33 million barrels of oil equivalent of proved and probable reserves.
Pre-emption Rights Under the Operating Agreement
Per the terms of the operating agreement of the Culzean field, the partners in the field have the first right to buy BP’s stake before it is sold to an outsider. Apart from BP, the other partners in the Culzean field include TotalEnergies, with the largest stake of 49.99% and Neo Energy, with an 18.01% holding. According to the operating agreement, the partners can pre-empt the sale of BP’s stake within 30 days from the date of announcement (Oct. 13). As such, the partners can acquire BP’s holding in the license on the same commercial terms as Serica Energy.
Potential Benefits for Serica Energy
Serica Energy noted that the potential acquisition of BP’s North Sea assets is anticipated to provide significant benefits for the firm, as it could substantially increase the company’s production and strengthen its cash flows from this high-quality, low-emission asset. The company has also mentioned that, besides the immediate gains, these assets are anticipated to provide long-term value through future exploration and production opportunities.
Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues. With natural gas playing an increasingly important role in the energy transition journey, AROC is expected to witness sustained demand for its services.
Eni is a leading global integrated energy company with a prominent focus on liquefied natural gas businesses. As natural gas has a lower carbon footprint compared with other fossil fuels, it will play an important role in the global energy transition process. Eni’s participation in the natural gas market will allow it to capitalize on the rising global demand in the future.
TechnipFMC plc is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. FTI’s project backlog, now at $15.8 billion, has grown sequentially in six of the last seven quarters, reinforcing long-term revenue visibility for the company.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
BP to Sell Stake in UK North Sea Licenses to Serica Energy for $232M
Key Takeaways
BP plc (BP - Free Report) , the British oil and gas major, announced the sale of its stakes in the P111 and P2544 licensesin the U.K. North Sea. Serica Energy, a U.K.-based independent energy company, will purchase these assets for a cash consideration of $232 million. This acquisition by Serica Energy includes a 32% non-operated working interest in the P111 license. The P2544 is an exploration license located adjacent to the P111 license.
The P111 license holds the Culzean gas condensate field, operated by the French energy company, TotalEnergies. Serica mentioned that the Culzean field is currently the largest individual gas-producing field in the UK North Sea. In the first half of 2025, the field produced 25,500 barrels of oil equivalent per day (boe/d) net to BP. The field also holds approximately 33 million barrels of oil equivalent of proved and probable reserves.
Pre-emption Rights Under the Operating Agreement
Per the terms of the operating agreement of the Culzean field, the partners in the field have the first right to buy BP’s stake before it is sold to an outsider. Apart from BP, the other partners in the Culzean field include TotalEnergies, with the largest stake of 49.99% and Neo Energy, with an 18.01% holding. According to the operating agreement, the partners can pre-empt the sale of BP’s stake within 30 days from the date of announcement (Oct. 13). As such, the partners can acquire BP’s holding in the license on the same commercial terms as Serica Energy.
Potential Benefits for Serica Energy
Serica Energy noted that the potential acquisition of BP’s North Sea assets is anticipated to provide significant benefits for the firm, as it could substantially increase the company’s production and strengthen its cash flows from this high-quality, low-emission asset. The company has also mentioned that, besides the immediate gains, these assets are anticipated to provide long-term value through future exploration and production opportunities.
BP’s Zacks Rank and Key Picks
BP currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are Archrock Inc. (AROC - Free Report) , Eni S.p.A (E - Free Report) and TechnipFMC plc (FTI - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues. With natural gas playing an increasingly important role in the energy transition journey, AROC is expected to witness sustained demand for its services.
Eni is a leading global integrated energy company with a prominent focus on liquefied natural gas businesses. As natural gas has a lower carbon footprint compared with other fossil fuels, it will play an important role in the global energy transition process. Eni’s participation in the natural gas market will allow it to capitalize on the rising global demand in the future.
TechnipFMC plc is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. FTI’s project backlog, now at $15.8 billion, has grown sequentially in six of the last seven quarters, reinforcing long-term revenue visibility for the company.