Aberdeen-headquartered Parkmead Group has completed the sale of its wholly owned subsidiary, Parkmead (E&P) Ltd, to Serica Energy (UK) Ltd, in a deal valued at up to £14 million with the potential for a further £120 million in contingent payments. This transaction marks a major step in Parkmead’s strategic shift away from UK offshore oil and gas towards its onshore and renewable energy assets, including its wholly owned wind farm in Scotland.
The sale, originally announced in December 2024, has now completed after all conditions were met. Parkmead received an immediate cash payment of approximately £7.3 million, with a further £7 million in firm deferred consideration to be paid in instalments over the next two years. In addition, Parkmead stands to gain up to £120 million in contingent payments, dependent on Serica securing development approvals for the Skerryvore and Fynn Beauly North Sea licences, both of which were included in the deal.
Parkmead’s Executive Chairman, Tom Cross, said: “I am delighted to announce the completion of the sale of Parkmead (E&P) Limited, which at the point of sale contained our UK offshore licences.
“The Group has received an excellent immediate cash payment for the disposal of this subsidiary, with further firm cash payments due over the next two years. We also retain a very attractive share of the upside should the significant projects at Skerryvore and Fynn Beauly proceed to development.
Parkmead is in a strong position and remains focused on maximising value from its onshore natural gas and renewable energy projects, in addition to unlocking attractive acquisition opportunities. Our management team is excited to deliver the next phase of the Group’s growth plans in renewable energies, natural gas and international E&P.”
The company’s decision to divest its North Sea offshore licences reflects the increasingly challenging environment for UK offshore oil and gas, as well as the government’s continued push towards net zero. By concentrating on onshore and renewable projects, Parkmead aims to unlock new growth opportunities and strengthen its position in the energy transition.
With the completion of this sale, Parkmead’s future strategy is firmly centred on expanding its onshore gas and renewable energy operations, including further development of its wind energy interests in Scotland.
