Acquisition

Centrica PLC
                  

August 8, 2005

Centrica to acquire interests in North Sea gas fields

Centrica plc today announced it has reached agreement with Kerr McGee to acquire
its non-operated interests in four producing gas fields in the Northern and
Central North Sea. This will add approximately 1.1 billion therms of gas and 11
million barrels of oil to Centrica's portfolio and is further evidence of the
company's commitment to secure supplies for its British Gas customers.

Under the agreement, which is subject to pre-emption rights from the existing
field partners, Centrica will pay £318.6 million to obtain interests in the
Andrew, Brae, Buckland and Skene fields. It will also acquire interests in
future exploration opportunities in the licence blocks and a development option
which could add significant reserves on the Andrew field.

All the fields have short to medium term production profiles which will benefit
from the current high wholesale commodity prices. Approximately 70 per cent of
Centrica's equity gas in the fields would be uncontracted and it will also
benefit through tariff income from its interest in the SAGE pipeline
transporting gas from the Northern North Sea.

Sir Roy Gardner, Chief Executive of Centrica, said: 'Today's acquisition
underlines our commitment to capitalise on suitable opportunities within the
North Sea as part of our wider international strategy to secure future supplies
for our British Gas customers

'As the UK becomes a net importer of gas, it is essential that Centrica is able
to source gas from a wide and diverse range of options and today's announcement
builds on our recent successes in acquiring a 20 per cent equity interest in the
Canvey Island LNG project and our existing long term supply agreements with
Statoil, Gasunie and Petronas.'

Gas from the Brae, Buckland and Skene fields is exported to the St Fergus SAGE
terminal, with gas from Andrew delivered to the Teesside terminal via the CATS
pipeline system.

Notes to editors:

Upon expected completion of the agreement in the final quarter of 2005, Centrica
will hold the following interests:


Andrew (operator BP)                                        6.66%
Brae (operator Marathon)                                    8%
Buckland (operator ExxonMobil)                              33%
Skene (operator ExxonMobil)                                 33%
SAGE pipeline system (operator ExxonMobil)                  4%

Enquiries:
Centrica Media Relations:                                   01753 494085
Centrica Investor Relations:                                01753 494900