Acquisition

Centrica PLC
                  

Centrica to acquire further offshore assets

Centrica plc has today announced that its subsidiary Centrica Resources Limited
has reached agreements with Chevron Texaco to acquire further offshore oil and
gas assets for a total consideration, including the value of associated tax
allowances, of £60.7 million.

The acquisitions will add around 280 million therms of gas and nine million
barrels of oil to Centrica's portfolio, with a further development option to
significantly boost reserves. Additional investment to complete this development
by 2007 would provide around a further 600 million therms of gas and nine
million barrels of oil. Centrica's share of the development program is estimated
at approximately £60 million.

Under the agreements, Centrica is to acquire a 33.33 per cent interest in the UK
side of the Statfjord oil and gas field (the Statfjord field is located in both
UK and Norwegian waters) and a 50 per cent interest in the Orwell gas field
(located in the Southern North Sea).

The agreements are conditional upon the pre-emption rights of the field
co-owners and DTI approval, with completion expected in March/April 2004.

Gas from the Orwell field is uncontracted and would add approximately 160
million therms of gas to Centrica's portfolio, being delivered to Bacton via the
Thames field (Centrica owns 10 per cent of Thames and has a 23.15 per cent
interest in the Hewett Bacton terminal).

Gas from the Statfjord field is uncontracted, being delivered to the St Fergus
terminal and would add 120 million therms of gas and nine million barrels of oil
to Centrica's portfolio.

In addition and subject to partner approval, the planned capital expenditure
program between 2005-2007 is designed to maximise gas production from the
Statfjord field over the following 10 years, increasing the level of recoverable
gas reserves by more than five times as well as enhancing the ultimate level of
recoverable oil reserves.

Jake Ulrich, Managing Director of Centrica Energy Management Group said: 'This
agreement is in keeping with our upstream assets strategy, building on our
portfolio of gas producing assets and medium term field development
opportunities. The associated oil production will provide us with both a
valuable hedge and a revenue stream.'

Enquiries:

Centrica investor relations       01753 494900

Centrica media relations          01753 494085