Centrica PLC
26 June 2002
26 June, 2002
Centrica swaps UK offshore assets to secure uncontracted gas
Centrica plc has today announced that its subsidiary Centrica Resources Limited
has reached agreement with subsidiaries of the Eni Group to acquire a package of
producing and development stage offshore gas assets in the Central North Sea in
exchange for its non-core interests in the Liverpool Bay Fields. Centrica will
also receive a balancing cash payment. In total, Centrica will acquire around
700 million therms of uncontracted gas production and build on its interest in
the Armada field.
The value of the respective interests and cash to be acquired by both parties is
approximately £85 million, with the balancing cash payment to be received by
Centrica representing approximately half of this value.
Under the agreement, Centrica is to acquire Agip's 5.58 per cent interest in the
Armada field (by volume, the sixth largest producing UK gas field in 2001) and
Lasmo's 4.5 per cent working interest in the Goldeneye development (in volume,
one of the most significant near-term UK gas fields). In addition, Centrica is
to acquire Agip's interests in the 'R Block' (Renee (17.26 per cent), Rubie
(4.78 per cent)) together with Block 21/2 which contains the undeveloped Glenn
oil and gas discoveries. The Shell-led Goldeneye development has been approved
by the DTI and, whilst there are no remaining well obligations in respect of the
other Licences, Centrica will look at further development opportunities, in
conjunction with partners.
In exchange, Agip will acquire Centrica's 8.9 per cent share of the Liverpool
Bay Development in the East Irish Sea. Acquired by Centrica at the time of its
purchase of upstream gas and oil company PowerGen North Sea Limited in October
1998, gas production from Liverpool Bay is contracted to PowerGen.
Overall, it is estimated that the assets involved in this transaction contain
net recoverable reserves of 1.4 billion therms of gas and 11 million barrels of
oil.
Jake Ulrich, Managing Director of Centrica's Energy Management Group, said:
'This asset swap is in keeping with our upstream assets strategy, exchanging oil
and contracted gas production acquired through an earlier acquisition for
predominantly gas producing assets which are uncontracted and better suit our
portfolio requirements.'
On disposal of its interest in the Liverpool Bay Fields, Centrica will book a
small loss.
Centrica already has a 6.97 per cent interest in the Armada field, acquired from
Innogy plc in 2001. The Eni Group already has a 45.0 per cent interest in the
Liverpool Bay Development.
Enquiries:
Centrica Media Relations: 01753 494085
Centrica Investor Relations: 01753 494900
This information is provided by RNS
The company news service from the London Stock Exchange
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