LONDON -- Centrica is acquiring a 45% stake in gas development block 5(c) from Canadian Superior Energy for $142.5 million (£87 million). The agreement is subject to pre-emption rights from the existing field partners and subject to approvals from the Trinidad Government and Canadian courts. The block, off the southeast coast of Trinidad, is operated by BG Group.
To date, successful exploratory drilling on block 5(c) has identified significant contingent gas reserves, with recoverable reserves attributable to a 45% equity stake estimated at 650 bcf, the company says
This acquisition would provide Centrica with a material gas position in Trinidad that is close to existing gas pipeline infrastructure and Liquefied Natural Gas (LNG) export facilities. The gas could supply Centrica customers in the UK, with additional optionality provided by Centrica's North American customer base and the opportunity to sell into other Atlantic basin markets.
Subject to development plan approval, first gas from block 5(c) could be delivered in 2014.
“Trinidad is one of the key export areas for Atlantic basin LNG with substantial available reserves and infrastructure in place,” says Sam Laidlaw, chief executive of Centrica. “Gas produced from this block could help address our long-term structural hedge position by reducing our exposure to volatile wholesale gas prices, offering a potential future gas supply option for our British Gas customers in the UK and for our Direct Energy customers in North America”
Centrica acquires stake in offshore Trinidad block
Centrica is acquiring a 45% stake in gas development block 5(c) from Canadian Superior Energy for $142.5 million (£87 million).