Centrica adds to offshore assets
19 Jan 2004
Centrica today announced that its subsidiary, Centrica Resources Ltd, has reached agreements with ChevronTexaco to acquire further offshore oil and gas assets for £60.7 million.
According to a statement, the acquisitions will add around 280 million therms of gas and nine million barrels of oil to Centrica's portfolio, with a further development option to significantly boost reserves.
Additional investment to complete this development by 2007 would provide around a further 600 million therms of gas and nine million barrels of oil. Centrica's share of the development program is estimated at approximately £60 million.
Under the agreements, Centrica is to acquire a 33.33 per cent interest in the UK side of the Statfjord oil and gas field, which is located in both UK and Norwegian waters, and a 50 per cent interest in the Orwell gas field, located in the Southern North Sea.
Gas from the Orwell field would add approximately 160 million therms of gas to Centrica's portfolio, being delivered to Bacton via the Thames field. Gas from the Statfjord field would add 120 million therms of gas and nine million barrels of oil to Centrica's portfolio.
The agreements are conditional upon the pre-emption rights of the field co-owners and DTI approval, with completion expected between March and April 2004.
