Centrica adds to its offshore gas assets

Centrica plc has today announced that the company has entered into four agreements to acquire further interests in offshore assets in the North Sea and Irish Sea.

The agreements have been reached with Innogy, Amerada Hess, Kerr-McGee and Burlington, for a total consideration of £62.3 million and are expected to complete in 2001.  These deals add more than 110 bcf of gas and 2.1 m barrels of oil to Centrica’s portfolio.  It is forecast that there will be future capital expenditure relating to the assets of around £40 million.

The largest of the acquisitions is the purchase of Innogy’s 6.97 per cent interest in the Armada field.  The other agreements are with Amerada Hess for its interest in the Amethyst field and related interests including the Rose development, and with Kerr-McGee and Burlington for interests in block 110/3c in the East Irish Sea.

Following these acquisitions, Centrica’s interest in these fields will be:

Armada 6.97%
Rose 27% (estimated)
Romeo 37.5%
Amethyst 8.95%
110/3c 52.8%

Jake Ulrich, Managing Director of Centrica Energy Management Group said: “These acquisitions are in line with our strategy of securing upstream assets that provide a good fit with our existing assets and gas supply portfolio.”