Serica Energy has received regulatory consent to complete the acquisition of Parkmead's North Sea assets.
Serica announced in December that it had struck a £14million deal to acquire Aberdeen-based Parkmead (E&P) Limited, which has a 50% stake in two licences, Skerryvore and Fynn Beauly.
In an update to shareholders this morning, Serica said the North Sea Transition Authority had given the deal the green light and that the deal was "moving towards completion".
A contingent part of the deal, capped at another £120million, relies on whether Serica can get field development plans approved on the assets.
Today's update also saw Serica lower its outlook for 2025 total production, pressured by production delays at its Triton floating production storage and offloading unit in the North Sea.
Serica has increased production through acquisitions and investments in recent years, but faced challenges in 2024 due to an outage at its Triton FPSO operation, which impacted output.
The company expects production at Triton to resume in June, with no further shutdowns planned for 2025. Serica has revised its production forecast to between 33,000 and 37,000 barrels of oil equivalent per day, down from the previous estimate of 40,000 boepd.
Optimism
Meanwhile, the firm's chairman, David Latin, said he was "more positive" on the direction of government policy than a year ago, but said the industry "was not out of the woods yet."
He said: "The energy debate is sometimes posited as a choice between domestically produced oil and gas and renewable sources. The fact is that the UK needs all of the above. Homegrown oil and gas supports quality jobs in our communities, enhances the UK's security, enables an equitable energy transition, and generates government tax revenues. Serica alone has paid over £500 million of tax during the last five years.
"Between now and achieving net zero in 2050, the Climate Change Committee's energy transition pathway estimates that the UK will need 13-15 billion barrels equivalent of oil and gas, during which period the UK is projected to import more than half its essential oil and gas requirements. Although production from the UK North Sea is in decline, the steepness of that decline is in part due to government policies over recent years.
"Of the barrels that the UK needs, only an estimated four billion are set to be produced in the North Sea, worth an estimated value of £200 billion to the UK economy. This figure could rise to seven billion barrels with supportive fiscal and regulatory frameworks in place, generating a further estimated £150 billion for the UK. Oil and gas in the UK North Sea remains a very valuable national resource and it is common sense to prioritise its exploitation over imports."
He added: "The UK Government has recently launched two formal consultations on UK North Sea licensing and taxation. In addition, we await the outcome of the consultation on guidance for Environmental Impact Assessments for new projects. The combined impact of these three processes will be pivotal in determining the future of the North Sea."
Serica remains in discussion with EnQuest PLC regarding a possible business combination.