8th Dec 2021 10:23
(Alliance News) - Centrica PLC on Wednesday announced plans to sell Spirit Energy's Norwegian oil and gas assets for around GBP800 million, as the energy business continues to restructure its portfolio away from carbon intensive oil and gas exploration.
Windsor, Berkshire-based Centrica will sell Spirit's entire Norwegian portfolio plus the Statfjord field and receive 69% of the sale proceeds, about GBP560 million, although it said some adjustments were likely in the deal.
The British Gas-owner said the sale is part of its effort to focus its business portfolio.
Sval Energi AS will buy Spirit Energy's Norwegian oil and gas business, while Equinor ASA will acquire Spirit's interests in the Statfjord field.
"We are pleased to continue to bring focus to Centrica's portfolio with these transactions, which are aligned with our strategy to reduce our exposure to carbon intensive oil and gas exploration and production in a way that maximises shareholder value," commented Chief Executive Chris O'Shea.
Following the sale, Centrica said Spirit will effectively now be in run-off, and will focus on ensuring it can fund its decommissioning liabilities.
"This sale is another important milestone in the turnaround of Centrica and follows our significant organisational restructure last year and the sale of Direct Energy earlier in 2021," O'Shea said.
Centrica shares were up 0.2% at 67.80 pence in London on Wednesday morning.
By Will Paige; [email protected]
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