Statoil transfers Norway field interests to Centrica
Centrica has agreed to acquire a package of oil and gas interests in the Norwegian North Sea from Statoil for $1.525 billion.
READING, UK – Centrica has agreed to acquire a package of oil and gas interests in the Norwegian North Sea from Statoil for $1.525 billion.
A further $100 million is payable, contingent on the future production performance of the main producing asset, the Kvitebjørn field.
Centrica says the transaction will bring it 117 MMboe of 2P reserves, and increase its production by 34,000 boe/d. The company will also become for the first time an operator of producing assets offshore Norway.
Kvitebjørn is in the Tampen area of the North Sea, 170 km (106 mi) northwest of Stavanger, and close to Centrica's existing interest in the Statfjord field. Its production is connected to the Troll Terminal for onward export to the UK.
Currently Kvitebjørn produces around 60 MMboe/yr of gas and oil, with 2P reserves estimated at 473 MMboe (Centrica's share will be 11.4 MMboe/yr, with 90 MMboe of 2P reserves).
The largest development prospect acquired is Valemon, a few kilometers southwest of Kvitebjørn. Centrica says this is Norway’s largest high-pressure/high-temperature gas development, with total 2P reserves of 162 MMboe (Centrica's share 21 MMboe).
Additionally, Centrica and Statoil signed a memorandum of understanding on collaboration in gas-focused exploration opportunities in Norway and the UK.
They have also entered into a long term-gas sales agreement, under which Statoil will deliver 5 bcm (177 bcf) of gas to the UK market per year from 2015-2025. The existing agreement is due to expire in 2015.
The full list of assets transferred by Statoil to Centrica is as follows (* Statoil-operated):
Kvitebjørn* From 58.550% to 39.550%
Heimdal* From 39.443% to 29.443%
Valemon* From 66.775% to 53.775%