Acquisition

Centrica PLC
Centrica investor relations, 01753 494900
Centrica media relations, 01753 494085
                  

   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.