LONDON -- Centrica has reached an agreement with Hess to acquire a 67% interest in the undeveloped York gas fields in the southern North Sea for £22 million ($31 million).
The acquisition adds to the 23% of the development acquired as part of the Rough gas storage acquisition in 2003, and takes Centrica's interest in the fields to 90%.
The York gas development represents the largest known undeveloped gas reserve in the southern sector of the North Sea, the company says. Centrica estimates 107 bcf of reserves from its enlarged stake in the field, of which 79 bcf are directly attributable to this acquisition.
The York fields, situated adjacent to the Rough gas storage reservoir, comprise the main south reservoir and a separate east reservoir, both capable of development. The first gas flows are expected as early as 2011, and Centrica plans to export production via its Easington terminal.