Centrica plc, the owner of British Gas, today announced the purchase of the entire share capital of Newfield UK Holdings Limited, the UK subsidiary of Newfield Exploration Company, for $486.4 million (£242 million) in cash. The price is subject to certain adjustments based on working capital and indebtedness.
Centrica will take an 85 per cent operated interest in the Grove gas field which started production in summer 2007, an 80 per cent interest in the Seven Seas gas development, the Sloop gas discovery and associated exploration acreage.
Sam Laidlaw, Chief Executive of Centrica, said: “This important investment to acquire Newfield UK is in line with our strategy of increasing our level of gas reserves to supply our British Gas and European customers. As a result of the acquisition, we expect to add net gas reserves of up to 300 billion cubic feet of gas over the next three years, equivalent to more than a fifth of Centrica’s current UK gas reserves.
“We will also benefit through equity gas being delivered into continental Europe, close to our main customer base in Holland and Belgium. The acquisition also brings organisational capability and helps build our competitive advantage through the experience of operating development-stage gas fields.”