9th Jul 2008 07:00
Centrica acquires its first Norwegian gas producing interests Centrica plc, the parent company of British Gas, today announced it has reachedagreement to acquire interests in a package of non-operated gas and oil assetsin Norway for $375 million (£190 million) in cash, including its first gasproduction in the Norwegian sector. The agreement, with Marathon Oil, will seeCentrica acquire interests in the Heimdal area of the Norwegian North Sea, whichincludes producing fields, discoveries and exploration prospects. Additional capital investment of approximately £125 million will be required tomaximise the total reserves potential of 165 billion cubic feet equivalent(bcfe) over the next four years. At the effective date of acquisition, 1 January2008, the immediately recognisable reserves were 100 bcfe, of which 70 per centwas gas. On closing, the final consideration will be adjusted downwards toreflect production since the start of 2008. Centrica will acquire a 23.8 per cent interest in the Heimdal field, a 46.9 percent interest in Vale and a 20 per cent interest in Skirne/Byggve, all of whichare producing fields. It will also acquire interests in the Heimdal East andPeik discoveries which could be developed by 2012. Gas currently being producedfrom the fields is contracted until 2011 at prices directly linked to the UKmarket. After 2011, Centrica could deliver the gas to the UK or continentalEurope. The agreement will further build on the company's position within the Norwegianand UK sectors of the North Sea. Over the past two years Centrica has acquiredinterests in twelve exploration licences in the Norwegian sector and holdsinterests in over thirty producing, development or exploration stage assets inthe UK sector. Sam Laidlaw, Chief Executive of Centrica, said: "This investment is in line withour strategy to reduce the Group's exposure to movements in gas prices throughsecuring additional upstream assets. It also increases the level of gas reservesto supply our British Gas customers and gives us our first producing interestsin Norway, building on our existing exploration position." "This deal underlines our commitment to invest in energy supplies from acrossthe globe as the UK's existing North Sea production declines. It also providesus with a good combination of producing fields, discoveries and explorationprospects." \* TEnquiries:Centrica Investor Relations: +44 (0)1753 494900Centrica Media Relations: +44 (0)1753 492551\* T Notes: 1/ The agreement is subject to Norwegian government approvals. Copyright Business Wire 2008Related Shares:
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