The £300m deal will see Serica Energy buy into the Bruce, Keith, and Rhum fields, with interests of 36, 35, and 50 per cent respectively, paying most of the fee over the next four years.
Serica, which announced the deal earlier today, said they will pay BP an initial upfront payment of around £13m, a percentage share of cash flow over the four-year period, and contingency payments based on commodity prices and the performance of the assets.
It is estimated that the deal, which will increase the relative minnow Serica’s output by sevenfold, will be completed in the third quarter of next year.
BP’s upstream Chief Executive Bernard Looney told Reuters: “This is an example of BP’s upstream strategy in action - refreshing our portfolio and focusing our activity on assets which will add most value over the long-term.
“We remain committed to the North Sea and continue to invest. We expect our production there to double to around 200,000 barrels equivalent a day by 2020 through new projects like Quad 204 and Clair Ridge.
“While the Bruce (the collective name for the three fields) assets are no longer core to BP, we are confident that Serica is the right owner and operator to maximise their continuing value for both companies and for the UK.”
Serica’s chairman Tony Walker added: : “This transaction will establish Serica as a leading British independent oil company with the scale, balance sheet and operating capability to prosper in the North Sea’s rapidly changing upstream oil and gas industry.”