Acquisition

Centrica PLC
                  

Centrica reaches agreement to double its interest in North Sea field

Centrica plc today announced it has reached agreement with Britoil plc, a
subsidiary of BP plc, to double its interest in the Statfjord oil and gas field
in the northern North Sea. Under industry rules as an existing shareholder in
the field, Centrica has exercised its pre-emption right to match a bid of $266
million (£151 million) to acquire BP's 4.84 per cent interest.

Subject to completion during the second quarter and a successful development
programme on the field, the agreement would add an additional 65 billion cubic
feet (bcf) of gas and 14.5 million barrels of oil to Centrica's portfolio.
Centrica acquired its original 4.84 per cent interest from Chevron Texaco in
2004.

As one of the largest fields discovered in the North Sea, Statfjord is in the
process of completing a 'late life' depressurisation project to maximise future
recovery of gas from the field for the 10 years following 2007. Statfjord is
currently an oil producing field with associated gas which will be re-engineered
to focus on gas production, increasing the level of recoverable gas reserves by
more than five times as well as enhancing the ultimate level of recoverable oil
reserves.

Centrica's additional share of the associated capital expenditure for the
project would be approximately £50 million. A new export pipeline from the
Statfjord field to the FLAGS pipeline into St Fergus will also enable additional
quantities of gas to be delivered to the UK market.

Sir Roy Gardner, Chief Executive of Centrica, said: 'We have delivered
significant value from our current interest in Statfjord and now have the
opportunity to increase our presence in one of the North Sea's largest fields
which will deliver additional gas into the UK market.

'This is in keeping with our upstream strategy, to build our portfolio of high
quality producing assets and medium term development opportunities to supply our
British Gas customers.'

Statfjord is situated on the border of UK and Norwegian waters. Centrica intends
to increase its participation in the Norwegian oil and gas sector, having
pre-qualified as an operator in Norway in 2005.

Enquiries:

Centrica Media Relations 01753 494085

Centrica Investor Relations 01753 494900