Centrica progresses offshore deal and ceases interest in another

Centrica plc has today announced that its subsidiary Centrica Resources Limited has progressed plans to acquire an interest in the Statfjord oil and gas field from Chevron Texaco, as announced on 19 January.

The acquisition of a 33.33 per cent interest in the UK side of the field for a total consideration of £46.4m has cleared industry pre-emption procedures and is expected to complete later this month.

Once complete, the Statfjord acquisition will add 120 million therms of gas and nine million barrels of oil to Centrica’s portfolio. The Statfjord partners have recently approved the commencement of further studies, which pave the way for re-development of the field.

Subject to the outcome of the studies, this re-development could provide significant additional oil and gas production, as referred to in our January announcement. Centrica’s share of the development program is estimated at approximately £60 million.

However, the proposed acquisition of a 50 per cent interest in the Orwell gas field in the Southern North Sea from Chevron Texaco, also announced on 19 January, has been pre-empted by Tullow, an existing partner in Orwell, which has exercised its right to buy the interest in place of Centrica.