Serica Energy capitalises on Prax North Sea collapse

Serica Energy has taken strategic advantage of the downfall of Prax Group, securing a deal to acquire the company’s North Sea assets in a move expected to bolster its standing in the sector. The AIM-listed oil and gas firm announced a $25.6 million agreement to buy Prax Upstream from administrators, following the collapse of the energy group helmed by Winston Soosaipillai, who is now reportedly at large.

The deal sent Serica’s shares soaring almost 15 percent, signalling strong market approval. Prax’s North Sea operations, along with pending acquisitions from TotalEnergies and One Dyas, are included in the transaction, further strengthening Serica’s asset base and signalling confidence in its future growth. According to Serica’s chief financial officer Martin Copeland, the company was able to navigate Prax’s financial turmoil—attributable in large part to the operational and cost pressures on UK refineries—and secure a highly favourable position. Copeland highlighted that Prax’s North Sea business was run independently by experienced operators who will now transfer to Serica, ensuring operational continuity and sector expertise.

As part of this acquisition, Serica will take over a 40 percent operated interest in the Greater Laggan Area, 10 percent in the Catcher Field, and 5.21 percent in the Golden Eagle Area Development. The Greater Laggan Area also includes the operation of the Shetland Gas plant, the newest onshore gas processing facility in the UK. Serica’s chief executive Chris Cox emphasised the efficient operation of the Lancaster field—acquired by Prax through its purchase of Hurricane Energy in 2023—as further evidence of the value presented by this transaction.

Prax’s collapse has also had a significant human cost. The Lindsey refinery in North Lincolnshire—one of only five large refineries left in Britain—ceased operations following insolvency at the end of June. Administrators announced that 125 of the site’s 380 employees would be made redundant by the end of October. The official receiver and administrators are continuing efforts to prioritise health and safety at the site while exploring options for its sale. The trade union Unite claims there are at least two interested buyers, with uncertainty remaining over whether the refinery will resume operations or be mothballed for storage use.

Winston Soosaipillai, who built Prax alongside his wife Arani from a single petrol station in 1999, leaves behind a company investigated by the Insolvency Service for conduct and creditor obligations. Teneo, handling administration for Prax’s parent company State Oil, is overseeing the ongoing divestment of ancillary subsidiaries. The acquisition positions Serica to expand its North Sea footprint at a pivotal moment in the UK’s energy market, underscoring both the volatility and opportunity present in the sector.