Three separate agreements over the Beryl Gas sale and purchase contracts have been reached between Centrica plc and Amerada Hess Limited, Enterprise Oil plc and OMV (UK) Limited.
The sale and purchase contracts between Centrica and each of these companies for gas from the Beryl field will be terminated on 1st October 1998. In return Centrica will pay compensation to the individual companies for the termination of these agreements.
As a result of these deals Centrica has reduced its gas purchase commitments. Taken together with its previous contract renegotiations Centrica has now reduced its price and volume commitments on more than 30 billion therms.
These deals also provide the Beryl partnership with the opportunity to enhance oil recovery and will enable the three companies, together with Mobil, the field operator, to make more efficient use of the Beryl area infrastructure.
Termination of these contracts aligns Amerada, Enterprise Oil and OMV with Mobil, which terminated its Beryl gas sales contract with Centrica in December 1996.
Roy Gardner, Chief Executive of Centrica said
"I am delighted that we have negotiated these deals with Amerada Hess, Enterprise Oil and OMV. They are a further important step in the renegotiation of our North Sea gas purchase contracts and have resulted in another significant reduction in our "take or pay" commitments."