Update on BKR Transaction
Monday 10 September 2018
Serica Energy plc announced that it has agreed with BP to extend the completion timetable for the BKR (Bruce, Keith and Rhum fields) transaction for one month until early November 2018. This extension is to enable outstanding regulatory and partner consent processes to be completed, including processes by the US Office of Foreign Assets Control (OFAC) relating to the Rhum Field.
These consents are part of the conditions for completion as set out when the BKR transaction was announced. For operational and logistical reasons to ensure a safe and efficient transfer of ownership and operations, they are required a few weeks before transfer of operations can commence. Serica and BP are working closely together and are committed to achieving this new timetable. The terms of both the BP transaction and the related transaction with Total remain unchanged.
In particular, Serica continues to be entitled to a share of net cash flows from the BKR Assets relating to the BP and Total interests during the period from the effective date of the BP and Total acquisitions (1 January 2018) to the date of Completion. This will continue to be the case under the extended timeline, with gas prices achieving record levels during the effective period since the start of the year.
All other transition requirements, including transfer of offshore and onshore staff, readiness of operating, safety and environmental procedures and transfer of all contractual obligations, are ready to complete once all outstanding consents have been received. Serica has made good progress with the acquisition and transition programme, working closely with BP, and will be ready to assume operatorship of the BKR Assets once the outstanding conditions have been met.