Centrica increases North Sea operations
Centrica increases North Sea operations
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Friday, 03, Mar 2006 10:44
British Gas owner Centrica has agreed a deal with BP which will double its stake in a key North Sea oil and gas field.
Centrica, which recently increased British Gas domestic bills by 22 per cent despite posting record annual profits, will double its interest in the Statfjord oil and gas field, in a move which will boost UK gas supplies.
The energy giant has paid £151 million to acquire BP subsidiary Britoil's 4.84 per cent interest in Statfjord, increasing Centrica's supply by 65 billion cubic feet of gas and by 14.5 million barrels of oil.
Centrica already owns a 4.84 per cent interest in the field, which it bought from Chevron Texaco in 2004.
Sir Roy Gardner, chief executive of Centrica, insisted that the deal would benefit both shareholders and customers by ensuring that wholesale supplies remain sufficient.
"We have delivered significant value from our current interest in Statfjord and now have the opportunity to increase our presence in one of the North Sea's largest fields which will deliver additional gas into the UK market," Sir Roy said.
"This is in keeping with our upstream strategy, to build our portfolio of high-quality producing assets and medium-term development opportunities to supply our British Gas customers."
Statfjord is situated on the border of UK and Norwegian waters, with Centrica adding that it intends to increase the exploitation of gas at the site over the next ten years.
The energy giant said that its additional share of the associated capital expenditure at Statfjord would be in the region of £50 million.
Wholesale gas prices have increased by 63 per cent since the start of the year, prompting suppliers to look to increase their productive capabilities.