Serica Energy has completed the acquisition by its wholly owned subsidiary, Serica Energy (UK) Limited, of 30% non-operated interests in the Greater Buchan Area (GBA) from Jersey Oil & Gas (JOG).

The partners in the GBA are now Serica Energy (UK) Limited (30%), NEO Energy (50%) and JOG (20%).

Serica stated that the transaction will provide Serica with the option of participating in the redevelopment of the Buchan field and other potential projects in the GBA, such as the development of the J2 and Verbier discoveries.

The group made a cash payment to JOG of $7.5m (£5.9m), being $6.8m (£5.4m) adjusted to reflect an economic date of 1 April 2023. The remainder of the potential consideration is in the form of a Buchan development cost carry and contingent amounts linked to certain future events.

Chief executive of Serica, Mitch Flegg, commented: “We are pleased to have completed this transaction which creates the possibility of adding a third production hub to Serica’s North Sea portfolio.

“As a potential domestic source of oil and gas with a low level of production emissions, a provider of quality jobs for UK workers and a generator of much needed future tax revenues, Buchan is the sort of project the UK needs as part of the energy transition.”

Subject to project sanction and regulatory approval, Serica revealed the target for first production from Buchan is Q4 2026.

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