DECC considers Columbus proposals

Offshore staff

LONDON – Serica Energy has submitted to the UK government a plan to develop the Columbus field in the UK North Sea. All basic engineering design has been completed, and the plan is under review by the Department of Energy and Climate Change (DECC).

Consultants Netherland Sewell & Associates assess Columbus’ 2P reserves at 79.5 bcf of gas and 4.9 MMbbl of condensate (18.2 MMboe combined).

Serica aims to start-up during 2014. The company had been negotiating an 8.8-km (5.5-mi) subsea tieback to the BG-operated Lomond bridge-linked platform, although there had been disagreements concerning tariff terms.

In a separate development, Serica has accepted Pace Petroleum’s offer to acquire its Indonesian E&P interests for $33 million cash, plus a deferred payment of $2 million, contingent on the outcome of a planned well on the producing offshore Kambuna field. Funding for the transaction will be provided via a new resources fund, dependent on Hong Kong-based private equity group GEMS completing a fundraising exercise in July.

Serica’s interests include 25% of Kambuna; 30% of the Kutai exploration block off East Kalimantan; and Serica’s 100% interest in the East Seruway block off North Sumatra.

If this does not go through, Serica will continue discussions with other parties, but may also opt to retain its Kambuna production, which has benefited from recent high oil prices.

06/30/2011



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