Centrica deal grows its oil and gas production

Tom Bawden
Tuesday 31 January 2012 11:00 GMT
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Centrica accelerated its push into oil and gas production today after striking a $223 million (£142m) deal with ConocoPhillips that will nearly double its interest in a key North Sea field.

The British Gas owner is buying a 15.17 per cent stake in the Statfjord field, which straddles the UK and Norwegian North Sea, taking its share of the project to 34.3 per cent.

The deal propels Centrica towards its goal of increasing its production by 50 per cent in the next five years to 75 million barrels of oil equivalent a year, as the group seeks to tap the vast profits on offer as wholesale prices soar.

It comes after Centrica paid Statoil £1 billion in November for stakes in eight oil and gas developments on the Norwegian continental shelf.

Centrica is keen to step up the so-called upstream part of its business as wholesale prices have been soaring.

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