BP to Sell Stake in UK North Sea Licenses to Serica Energy for $232M

BP plc BP, 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, Eni S.p.A E and TechnipFMC plc FTI, 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.

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This article originally published on Zacks Investment Research (zacks.com).

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