British Gas owner Centrica is to pay ConocoPhillips $223m for its non-operated interests in the gas- and oil-producting Stratfjord field (and associated satellites) in the North Sea.
"Increasing our stake in Statfjord marks the latest stage in our drive to secure high quality sources of gas for our customers, adding both earnings and long-term value to Centrica," said Managing Director Mark Hanafin.
The fields are located across both Norwegian and UK sectors of the Northern North Sea and produce gas for the UK market. The transaction takes Centrica's interest in the field from 19.13% to 34.3%.
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The acquisition adds additional reserves of 36 million barrels of oil equivalent to Centrica's portfolio. The resulting net increase in production will be over 11,000 barrels of oil per day.
"The acquisition, which follows our announcement last year of a new 10-year gas supply deal with Norway and acquisition of assets from Statoil, underlines our commitment to invest in North Sea production and secure future energy supplies for the UK," Hanafin added.
Centrica said that £200m of field development costs will be required in order to "maximise the long-term recoverable reserves". The acquisition is expected to be earnings- and cashflow-enhancing immediately.
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