Centrica PLC
October 3, 2005
Centrica completes offshore agreement and ceases interest in one field
Centrica plc today announced it has completed its agreement with Kerr McGee
Corporation by acquiring interests in the Brae, Buckland and Skene gas fields in
the North Sea.
The acquisition has completed industry pre-emption procedures and will add
approximately 1.1 billion therms of gas and 8 million barrels of oil to
Centrica's portfolio. The total consideration is £270 million.
All three fields have short to medium term production profiles which will
benefit from the current high wholesale commodity prices. Approximately 77 per
cent of Centrica's equity gas in the fields is uncontracted and it will also
benefit through tariff income from its interest in the SAGE pipeline
transporting gas from the Northern North Sea.
Following the exercise of pre-emption rights by Talisman Energy and Amerada
Hess, Centrica will no longer be acquiring a 6.66 per cent interest in the
Andrew field. Andrew is a largely oil producing field, with the gas already
contracted.
Enquiries:
Centrica Media Relations: 01753 494085
Centrica Investor Relations: 01753 494900
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