Centrica PLC
Centrica invests to acquire North Sea gas assets
Centrica plc, the owner of British Gas, today announced the purchase of the
entire share capital of Newfield UK Holdings Limited, the UK subsidiary of
Newfield Exploration Company, for $486.4 million (£242 million) in cash. The
price is subject to certain adjustments based on working capital and
indebtedness.
Centrica will take an 85 per cent operated interest in the Grove gas field which
started production in summer 2007, an 80 per cent interest in the Seven Seas gas
development, the Sloop gas discovery and associated exploration acreage.
Sam Laidlaw, Chief Executive of Centrica, said: 'This important investment to
acquire Newfield UK is in line with our strategy of increasing our level of gas
reserves to supply our British Gas and European customers. As a result of the
acquisition, we expect to add net gas reserves of up to 300 billion cubic feet
of gas over the next three years, equivalent to more than a fifth of Centrica's
current UK gas reserves.
'We will also benefit through equity gas being delivered into continental
Europe, close to our main customer base in Holland and Belgium. The acquisition
also brings organisational capability and helps build our competitive advantage
through the experience of operating development-stage gas fields.'
Enquiries:
Centrica Investor Relations: 01753 494900
Centrica Media Relations: 0845 072 8001
Notes:
1/ Grove has been developed with a normally unmanned platform exporting gas via
pipeline to the Venture operated Markham field and then to Den Helder in the
Netherlands. Centrica's partner in the field is Sojitz, a Japanese conglomerate,
with 15 per cent interest. Seven Seas is a development prospect which Centrica
will operate with an 80 per cent interest, with Sojitz holding 20 per cent.
First production is anticipated around 2010. Exploration acreage includes
interests in six licences within the Southern North Sea
2/ It is currently estimated that additional capital expenditure of around £150
million will be required to realise the full gas reserves potential.
3/ The seller is Newfield International Holdings Inc. The purchaser is GB Gas
Holdings Limited, a subsidiary of Centrica plc.
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