Centrica buys more North Sea assets
British Gas parent company Centrica (LON:CNA) has added 9,300 barrels of oil equivalent to its production by acquiring Total's portfolio of North Sea assets in a US$388 million deal.
The portfolio includes seven producing fields in three major areas of the North Sea, the BG Group (LON:BG.) operated Greater Armada, the Alba field and the Mungo and Monan cluster, which are operated by Chevron and BP (LON:BP.) respectively.
Centrica's share in these fields gives it 22 million barrels of oil equivalent of proved and probable reserves, increasing its current reserve base by five percent. The assets are expected to produce 9,300 barrels of oil equivalent per day this year.
The oil and gas is mostly un-contracted and linked directly to the UK market.
"This acquisition in the North Sea provides a good fit with our existing portfolio and strategy, bringing strong cash flow and adding value for Centrica," said managing director of Centrica Mark Hanafin.
"It underlines our commitment to invest where we see attractive opportunities, securing future energy supplies for the UK."
Today's acquisition follows the purchase of a stake in the Statfjord project and satellite fields in the Norwegian and UK sectors of the North Sea from ConocoPhillips, which was announced in late January.
The deal has increased Centrica's interest in Statfjord by 15.17 percent to 34.3 percent, adding 11,000 barrels to Centrica's daily oil and gas production.
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