Centrica completes $1.7-billion Norwegian asset acquisitions from Statoil, ConocoPhillips

Offshore staff

WINDSOR, UK– Centrica plc has completed the $1.5-billion (£936-million) agreement with Statoil Petroleum AS to acquire a package of producing and development oil and gas assets in the Norwegian sector of the North Sea. An additional payment of up to $100 million (£61 million) is contingent on future production performance of the largest asset in the portfolio, Kvitebjørn.

Centrica says the transaction adds 117 MMboe of 2P reserves and increases production by 34,000 boe/d.

The company also has completed itsacquisition of ConocoPhillips’ non-operated interests in the Statfjord field and associated satellites. The $223-million (£137-million) transaction includes $103 million (£63 million) attributable to historic tax allowances, and takes Centrica’s equity in the Statfjord field to 34.3%, adding 36 MMboe of 2P reserves.

The company says combined, the transactions increase reserves by nearly 40% and are expected to increase production by more than 30%.

Mark Hanafin, managing director of Centrica Energy, said: “These acquisitions mark an important step in Centrica’s strategy to grow its upstream business. As well as being one of the top three gas producers in the UK, we have one of the fastest growing companies in Norway, with around a third of our gas and oil production now coming from the region.”

4/30/2012