Serica subsidiary Tailwind Energy receives North Sea block in 33rd licensing round

Tailwind Energy, a subsidiary of London-listed (LON: SQZ) Serica Energy, has been awarded a 100% interest in a North Sea block as part of the 33rd licensing round.

The North Sea Transition Authority awarded 27 new licences on Monday in the first batch to be awarded from 115 applications made as part of the 33rd Round.

Serica said the award of UK block 29/2A to Tailwind Energy is subject to the execution of licence documentation

The block contains the decommissioned Kyle oil field, which ceased production in June 2020.

During an initial two-year licence period, Serica said it will carry out studies to determine the feasibility of re-developing the Kyle field by means of a subsea tie-back to the Triton FPSO vessel via the Bittern field facilities.

Serica has a 46.42% interest in the Triton FPSO vessel and a 64.63% interest in the Bittern field.

© Tailwind Energy

Both the Triton FPSO and the Bittern field are operated by Dana Petroleum.

Serica said its estimate of recoverable resources from the redeveloped field is about 9 million barrels of oil.

Serica chief executive Mitch Flegg said a key aspect of the company’s strategy is maximising the use of existing infrastructure associated with its Bruce and Triton production hubs.

“An important element of this is adding hydrocarbon throughput from new sources as well as enhancing the contribution from fields that are already producing,” Mr Flegg said.

“This licence award adds another potential project to our hopper of near- and in-field opportunities.

The decision whether to proceed with the re-development of Kyle will depend on the results of our studies and the fiscal and regulatory situation at the end of the initial two-year term of the Licence.”

Tailwind Energy takeover

Serica formally completed its takeover of Tailwind Energy in March this year.

Following the addition of the Tailwind assets to its portfolio, Serica said it now has a balance of gas and oil production

Its production assets are focused around two main hubs including the Bruce, Keith and Rhum fields in the UK Northern North Sea, which it operates, and a mix of operated and non-operated fields tied back to the Triton FPSO.

Serica also has operated interests in the producing the Columbus (UK Central North Sea) and Orlando (UK Northern North Sea) fields and a non-operated interest in the producing the Erskine field in the UK Central North Sea.