Centrica completes offshore agreement and ceases interest in one field

Centrica plc today announced it has completed its agreement with Kerr McGee Corporation by acquiring interests in the Brae, Buckland and Skene gas fields in the North Sea.

The acquisition has completed industry pre-emption procedures and will add approximately 1.1 billion therms of gas and 8 million barrels of oil to Centrica’s portfolio. The total consideration is £270 million.

All three fields have short to medium term production profiles which will benefit from the current high wholesale commodity prices. Approximately 77 per cent of Centrica’s equity gas in the fields is uncontracted and it will also benefit through tariff income from its interest in the SAGE pipeline transporting gas from the Northern North Sea.

Following the exercise of pre-emption rights by Talisman Energy and Amerada Hess, Centrica will no longer be acquiring a 6.66 per cent interest in the Andrew field. Andrew is a largely oil producing field, with the gas already contracted.