Merged North Sea independent starts operations

Spirit Energy has begun trading as an independent North Sea area oil and gas operator.

Offshore staff

WINDSOR, UKSpirit Energy has begun trading as an independent North Sea area oil and gas operator.

This is a joint venture which combines Centrica’s E&P business with that of Bayerngas Norge.

Centrica owns 69% of the company, with Bayerngas Norge’s former shareholders, led by Stadtwerke München Group, owning the remaining 31%.

This year, production from the combined portfolios should be around 50 MMboe from 27 producing fields, with total 2016 year-end 2P reserves and 2C resources of 625 MMboe.

The company employs more than 700 people in the UK, Norway, Netherlands, and Denmark.

Spirit, a self-financing entity, plans to invest around £400-£600 million ($534-$801 million) annually to deliver production of 45-55 MMboe/yr going forward.

Centrica expects the transaction to generate £100-£150 million ($133-$200 million) net present value of synergies.

For 2018, the company added, Spirit’s focus will be on maximizing efficiency from its producing assets; progressing development projects such as Maria and Oda offshore Norway; appraisal drilling at the Fogelberg discovery in the Norwegian Sea; and drilling various other exploration prospects.

Spirit will also partner with Wintershall in submitting a plan for development and operation for theSkarfjell development in the Norwegian North Sea.

12/12/2017

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