Centrica awards onshore compression contract

Centrica plc has today announced that it has entered into two agreements to purchase further offshore gas assets in the Southern North Sea through its subsidiary Centrica Resources Limited.

An agreement has been entered into with Veba Oil and Gas UK Limited to purchase its 4.6 per cent interest in the Hewett area fields and the associated Bacton Phillips terminal and a 10 per cent interest in the Thames area field. This increases Centrica's Hewett holding to 13.1 per cent.

Agreement has also been reached with Total Oil Marine plc to purchase its 15 per cent interest in the Victor field. This increases Centrica's interest in the Victor field to 30 per cent.

Jake Ulrich, Managing Director of Centrica's Energy Management Group said: "The acquisitions are part of the strategy of securing assets which provide a good fit with our existing upstream equity and long term gas purchase commitments."

The aggregate cash consideration for the transactions is £13.45 million. These agreements add an estimated 64.5 billion cubic feet to Centrica's reserves.

A number of smaller agreements with other parties have been reached since April 1999 for a total consideration of £12.5 million. These have added an estimated 37 billion cubic feet to our reserves.