Serica’s $232M Acquisition of BP's North Sea Assets Halted After Partner Steps In

(Credit: TotalEnergies)

NEO NEXT Energy, a joint venture between Repsol and NEO, has exercised its pre-emption rights over BP’s P111 and P2544 licenses, blocking Serica Energy’s proposed $232 million deal for the North Sea assets.

Serica Energy said NEO NEXT, a license partner, has decided to take up its contractual rights of pre-emption over BP’s interests in the P111and P2544 licenses in the UK Central North Sea.

The transaction would have included a 32% non-operated working interest in the P111 license, which contains the Culzean gas condensate field, and the adjacent exploration license P2544.

Serica announced the deal with BP in October, saying it would mark a major expansion of its gas portfolio.

Culzean, operated by TotalEnergies, is the largest single producing gas field in the UK North Sea, with average net output to BP of about 25,500 barrels of oil equivalent per day (boepd) in the first half of 2025 and remaining 2P reserves of around 33 million boe as of January.

“While this outcome is of course disappointing, it was always known to be a possibility. Serica continues to actively pursue further M&A opportunities, as well as progress our attractive organic growth options, with a goal of diversifying the Company’s portfolio of assets, increasing production, and creating value for shareholders,” said Chris Cox, Serica’s Chief Executive Officer.

The deal had been subject to approval from joint venture partners under a 30-day pre-emption period. TotalEnergies, which holds 49.99%, and NEO NEXT, which owns 18.01%, both had the right to match Serica’s offer.

At the time the acquisition was announce, Serica said the transaction’s economic date was set for September 1, 2025, with $232 million in upfront cash consideration, subject to working capital adjustments and offset by post-tax cashflows between the economic and completion dates.