High oil and gas prices have boosted cash flow and profits at North Sea firms including the owner of the controversial Cambo field.
Siccar Point Energy enjoyed a $359 million (£275.3m) boost thanks to its holding in the BP Schiehallion field in the West of Shetland.
The firm, best known as the operator of the controversial Cambo oilfield, has released its full-year accounts for 2021.
As well as Schiehallion, Siccar Point Energy holds stakes in several high-profile including Equinor’s Mariner (8.89%) and Rosebank (20%), and its operated Cambo field (70%).
Along with partner Shell, Siccar Point was recently awarded a two-year extension by the regulator for the Cambo licences.
Earlier this month, it was announced that a deal had been struck for Ithaca Energy to acquire Siccar Point, expected to close in the second half of the year.
Siccar Point Energy reported pre-tax profits of $284.3m (£217.9m) in 2021, reversing a deficit of $266.1m the prior year.
Revenues surged from $142.3m in 2020 to $234.6m.
Serica’s ‘outstanding’ year
Meanwhile, Serica Energy enjoyed an “outstanding year” in 2021 as gross profits surged to £386.8 million, reversing £2.9m losses the prior year, amid a huge bump to commodity prices.
The North Sea operator has released its full year results for 2021, “illustrating the substantial changes” of the year.
Revenues jumped from £125.6m in 2020 to £514.1m, while pre-tax profits totalled £135.1m, up from £12.5m the prior period.
The jump in performance comes despite a drop in production to 22,200 barrels of oil equivalent per day, down from 23,800 boepd, due to an extended maintenance shutdown.
During the year, the firm started up the Rhum R3 well and the Columbus field in August and November respectively, and the firm’s overall reserves (2P) have increased to 62.2m boe, up from 61m.
Looking ahead to 2022, Serica plans to drill an exploration well at the North Eigg prospect “in early Q3 2022” using the Transocean Paul B Loyd Jr rig.
North Eigg has estimated mid-case recoverable resources of 60 million boe, if a discovery is made.
Chief executive Mitch Flegg said 2021 was an “outstanding” year for the firm, adding he planned look for potential acquisition targets.
“We will continue to pursue our investment-led strategy this year with a planned well intervention programme on the Bruce, Keith and Rhum fields (“BKR”) in addition to our exploration well at North Eigg.
“As always, we continue to look for acquisition opportunities that fit our criteria and will add value for our stakeholders.”
The year also saw production-sharing agreements with BP, TotalEnergies and BHP come to an end, with the firm now benefiting from 100% of output from the Bruce, Keith and Rhum fields.
Business transformed
Chairman Tony Craven Walker said Serica has been on a “remarkable transformation” in recent years and said it has an “important role to play” as a British firm operating major facilities in the North Sea.
“The tragic events in Europe now taking place have underscored the importance of our own domestic resources.
“I am hopeful that, with the recent publication of the British energy security strategy, government policy imbalances will now be corrected and that companies like Serica will be given the encouragement needed to continue the investment required to optimise the value and benefit of existing domestic resources whilst the development of new energy sources continues.”
