Centrica buys North Sea assets from Total

published 22 February 2012

British Gas owner Centrica is to acquire the Total E&P UK's non-operated portfolio of producing oil and gas assets (and associated infrastructure) in the Central North Sea (CNS).

The acquisition, worth $388m (£246m), is expected to add around 5% to Centrica's existing 2P (proven plus probable) reserves, an addition of 22m barrels of oil equivalents (36% gas, 64% oil).

The portfolio includes seven producing fields in three major areas - Greater Amrada, the Alba field and the Mungo and Monan cluster - and is expected to produce 9,300 barrels of oil equivalents per day.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

"Today's announcement marks another step in the growth of our upstream oil and gas business," said Centrica's Managing Director Mark Hanafin.

"This acquisition in the North Sea provides a good fit with our existing portfolio and strategy, bringing strong cash flow and adding value for Centrica. It underlines our commitment to invest where we see attractive opportunities, securing future energy supplies for the UK," he said.

Centrica expects the purchase to add immediate cash flow and raise its scale in the CNS region. "The transaction will also help to maintain the mix of oil in its upstream portfolio," the firm said.

The agreement is subject to UK government approval and other closing conditions.